What Are The 5 Ways To Resolve Corporate Litigation?

Corporate litigation can hang over a business for years or even decades. Whenever possible, most companies want to resolve their disputes promptly. To this end, you need to understand the potential ways of resolving litigation. 


An attorney will usually reach for legal motions as soon as a judge schedules a hearing. Ideally, your counsel can show the judge that the other side has a low probability of prevailing.

The preferred outcome would be for the court to dismiss the case with prejudice, meaning the other side can't bring the matter before the court again. However, the judge also has the option to allow the case to proceed. Also, the court could dismiss it without prejudice, meaning the parties could bring the matter back to the court at a later time.

Alternative Dispute Resolution

Many companies resolve corporate litigation through alternative dispute resolution (ADR) methods. ADR typically involves either mediation or arbitration. If you elect to go through ADR, you can choose whether or not to accept a binding outcome. When the parties agree to binding arbitration or mediation, that means whatever comes out of the process is the answer they have to accept.

Non-binding ADR has value, too, because it still allows the parties to work through an independent third party to sort out their differences. In many cases, they do accept the decisions even if the process isn't binding.


Frequently, the parties to corporate litigation will attempt to negotiate a solution. Suppose one company is suing another for breaching a licensing agreement and making more units than allowed. The injured party might propose that the offending side pay damages and then acquire a license that covers the desired number of units. A negotiated settlement can save both sides significant time, money, and aggravation.


Cases almost never go straight to trial in corporate litigation. A judge will order discovery, meaning both sides will have to show each other all of the evidence and lists of witnesses they might use in a trial. Each side then will have the opportunity to examine the evidence and depose the witnesses.

Discovery often resolves issues because it has the potential to turn up damning evidence. If an internal memo shows that officers of the company knew they were violating a contract, the other side will be in a strong position to propose a settlement or even ask the judge to dismiss the case.


If all else fails, the two sides can take the case to a trial. However, as long as the jury hasn't ruled, settlement and dismissal are still options.

Contact a local law firm to learn more about corporate litigation.