If you own a business, it is likely that you will come in conflict with another entity or person at some point. Generally, it is smart to try and avoid litigation at all possible. This is why mediation and arbitration are popular alternative means of avoiding litigation.
However, sometimes litigation is unavoidable. According to FindLaw, litigation is the act of an entity going to court to argue its case, and it may do so either in civil or criminal courts. Appeals occur if either party thinks the initial ruling is wrong.
What is litigation?
Litigation is what comes to the mind of most people when they imagine a “traditional” court case. That is, there is either the prosecution (criminal) or the plaintiff (civil) making a complaint to the court about the ways the other party violated the law. The other party is the defendant, and the defendant denies the accusations. It is also possible for the defendant to counter-sue in a civil case.
It is most likely that your litigious situation will be a civil case since you are a business. In the event that the case is criminal, it is the government who will bring the case against the defendant, not you specifically.
What is an appeal?
After the case, if one party believes that the judge made an incorrect decision, it is the right of that person to appeal. This means that the case will go to an appellate court. This court will then review the original judge’s decisions and determine the accuracy thereof. If the appellate judges believe that the original judge made a bad decision, usually the the case will end up back in court.