When is litigation typically used?

Litigation is typically used as a last resort when other methods of resolving disputes, such as negotiation or arbitration, have failed. This is primarily because litigation can be a lengthy, costly, and complex process involving the court system. Parties usually prefer to settle their disputes outside of court to avoid these challenges, making litigation an option that is generally pursued only after other avenues have been exhausted.

In cases where the parties cannot reach an agreement or if the stakes are high enough, litigation becomes necessary to determine the outcome through legal proceedings. This context underscores the understanding that most claims should ideally be resolved through alternative methods before resorting to litigation, solidifying the idea that it serves best as a final measure in the dispute resolution process.