If someone has sued your company, or sent a demand letter that threatens a lawsuit, you’re probably asking what comes next. Being in litigation means a disagreement has moved into a formal legal proceeding.
That proceeding usually happens in a court or, when a contract requires it, before an arbitrator. This guide explains the term, how business disputes get there, and the steps that usually follow.
What litigation means in plain terms
Litigation is the process of resolving a legal dispute through a court or an arbitrator. One side makes a claim, the other side responds, and the dispute is contested in a formal setting.
Is litigation the same as legal? Not quite. Litigation is one part of the law, the part where a dispute is actually fought. Drafting contracts, reviewing leases and giving advice are legal work, but they usually happen outside a lawsuit.
To litigate means to pursue or defend a claim through that process. Filing a lawsuit is only the start. Most of the work comes afterward, including exchanging information, motions, settlement talks and either a resolution or a trial.
If your company has been sued or received a demand letter, you don't have to sort out the deadlines alone. Our team can talk through your dispute with you at (305) 570-2208. Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
How a business ends up in litigation
A business usually ends up in litigation when a disagreement about money, control or property isn’t settled by talking. Common examples include:
- Commercial and contract disputes: a claimed breach, unpaid invoices, or a fight over what the agreement actually required.
- Shareholder and partnership disputes: disagreements over control, buyouts, distributions or duties owed to co-owners.
- Construction disputes: payment fights between contractors and subcontractors, lien foreclosure, and claims of construction contract fraud.
- Real estate and international trade disputes: these also reach Florida courts and arbitration when a deal or shipment goes wrong.
Where a case can be filed depends on the facts. Under Fla. Stat. § 47.011, an action must be brought in the county where the defendant resides, where the cause of action accrued, or where the property in litigation is located. This rule does not apply to actions against nonresidents.
Many contracts also name arbitration as the forum. Under Fla. Stat. § 682.02, an agreement to submit a dispute to arbitration is generally valid and enforceable. Fla. Stat. § 682.02 reads: “(1) An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract.” A court decides whether that agreement exists.
The stages of a lawsuit
A lawsuit moves through a set of stages, though the pace varies from case to case. The usual path is filing, service, responses, discovery, pretrial steps, and then settlement or trial.
Service means the other side formally receives the complaint and summons. Discovery is the period when both sides exchange documents and written questions and may take sworn testimony.
Florida courts also push many money cases toward mediation. Under Fla. Stat. § 44.102, a court must, on one party’s request, refer most filed civil actions for money damages to mediation, provided the requesting party is willing and able to pay the costs of mediation or the costs can be equitably divided between the parties, unless an exception applies.
By its own terms, Section 45.061 of the Florida Statutes “does not apply to causes of action that accrue after the effective date of this act,” so a business should not assume its offer-timing rules govern a dispute that arises today. The offer remains open for 45 days unless withdrawn sooner by a writing served on the offeree before the offeree accepts it, and an offer neither withdrawn nor accepted within 45 days is deemed rejected. However, § 45.061(6) states that the section does not reach any cause of action accruing after “the effective date of this act,” and the subsection itself does not further identify which act or date that phrase refers to.
Do litigation lawyers go to court?
Yes, litigation lawyers appear in court for hearings and trials. Much of the work, though, happens before anyone walks into a courtroom.
Lawyers draft the complaint or answer, gather and review documents, prepare witnesses and negotiate. They also handle motions that ask a judge to decide part of the case early.
Arbitration follows a different path. Arbitration hearings take place before an arbitrator instead of a judge and jury. Under Fla. Stat. § 682.03, a court may not refuse to order arbitration because the claim lacks merit. If the court orders arbitration, it must on just terms stay the related court case, though it may limit the stay to a claim that is severable.
What a business should do once it is in litigation
A business should start by reading every paper it was served and noting each deadline. Missing a response date can cost the company its chance to respond on its own terms.
Next, preserve records. Keep emails, texts, contracts, invoices, project logs and messages on company phones and laptops. Deleting or changing them can create new problems.
Avoid discussing the dispute with the other side without advice. Route questions and demands through counsel where you can. Under Fla. Stat. § 90.502, a client may refuse to disclose confidential communications made to get legal services. That privilege does not apply when the services were sought or obtained to enable or aid anyone to commit or plan to commit a crime or fraud the client knew about.
Costs, timing and what affects them
Costs and timelines depend on the facts, the claims, the court or arbitrator, and how the other side responds. No two disputes move at the same pace.
Court filing fees and other costs are separate from attorney fees. A business may owe both, and it should ask about each one early.
Some contracts shift fees. Under Fla. Stat. § 57.105, if a contract allows attorney’s fees to a party that must take action to enforce it, the court may allow reasonable fees to the other side when that side prevails on the contract.
Claim labels matter too. A party generally cannot recover in tort for a contract dispute unless the tort is independent of the breach, as the Third District held in Frutafino, S.A.S. v. Dole Chile, S.A.. Similarly, where an express contract covers the same subject, unjust enrichment claims generally cannot proceed.
Questions about fees are best raised directly with the office when you call.
Not sure what your next step is?
Talk it through with our team — we can walk you through how a situation like yours is usually handled and what your options are.
Talk with Ayala Law PA about your situation
If you’re the owner, manager or partner who opened a demand letter or lawsuit for a company, you’re facing deadlines you didn’t choose. Getting clear facts early helps you decide your next move.
Does a lawsuit always mean going to trial?
No. Many disputes settle or move to mediation before trial.
Can a contract send my dispute to arbitration?
Yes, if the agreement says so and Florida law enforces it.
Ayala Law PA focuses on business litigation, including commercial, contract, shareholder, construction, real estate and international trade disputes in Florida courts and arbitration. Eduardo A. Maura is the responsible lawyer for this page. The firm’s office is at 1646 W Snow Ave, Tampa, FL, and it represents businesses in Hillsborough County, Brandon, Riverview, Plant City, Temple Terrace and the Tampa Bay area.
To talk about your dispute, call (305) 570-2208 or use the contact form. For related reading, see the business litigation overview and the real estate agent lawsuit guide.
