• A person must weigh the pros and cons of litigation before going to court.Justice image by MVit from Fotolia.com
  
  In some cases, people resolve conflicts between individuals or businesses with arbitration or mediation, which means that a third party intervenes to make a decision or help reach a compromise. Sometimes arbitration and mediation aren't desirable, such as if a client feels they are entitled to much more in damages than would be gained through these processes. In such instances, it may be better to use litigation, which is the set of formal legal proceedings that enforce rights.
  
  

Precedents

• When two parties enter litigation, their case may not have many precedents behind it. This means that the rulings handed down in litigation proceedings may serve as a foundation for future cases. This can be seen both positively and negatively. For example, litigation rulings deter other individuals or companies from completing the same or similar offenses, which is a benefit. However, if a person or company loses the case, the precedent presents all individuals or companies who commit the same or similar offenses in a negative light. This is a con because it may damage the reputation of the company or individual, which can result in financial loss.
  
  

Cost

• Litigation can be extremely expensive because of fees for filing court documents and paying attorneys. Depending on the case, litigation can drag out for months, or even years, extending these costs.
  
  

Halt of Development

• In many cases, litigation proceedings place a temporary stay on activities. For example, if there is a conflict over ownership of merchandise, then neither of the parties involved in litigation may be able to sell the merchandise until the court determines who has rights to the property. Although this means that parties can't move forward, it gives both parties a chance to collect evidence and make their case without asset or property loss.
  
  

Conflicts

• Litigation is a serious tactic that implies no resolution is possible outside of the courts. This can make the conflicts within the case seem very hefty, even if they are not. People and companies may feel resentment at the fact they had to go to court, which can make it harder to repair relationships and divide communities into groups that support each party involved.
  
  

Public Scrutiny

• Although litigation proceedings may not be open to the public, they do give the public an awareness of the legal conflicts. This awareness is crucial to making decisions about affiliations and business partnerships. It allows the public to scrutinize each party carefully, which can get each party to play by operational and fairness rules.