Civil litigation occurs when two or more parties become involved in a dispute that cannot be resolved through other means. To be classified as civil litigation, as opposed to criminal, one party has to be seeking money or fulfillment of other duties owed rather than criminal sanctions. This type of legal matter must also be handled in the courtroom for trial where a judge handles the final decision. Two processes that can be used to help guide the case towards settlement, avoiding the expense and time of going to court, are arbitration and mediation. Both methods use a neutral third party to oversee the process, and they both can be binding, but mediation is typically used as a non-binding resolution, whereas arbitration is usually binding.
Civil litigation cases have a number of steps they must proceed through to get a final decision from a judge. These steps typically include investigation, pleadings, discovery, pretrial proceedings, potential settlement or trial, and even appeal, but can vary depending the case and proceedings. The step that is usually most helpful to have an attorney work with you is the discovery phase. This phase includes the exchange of information relevant to the case through depositions, interrogations, and subpoenas. When a case does go all the way to trial, the timeline can vary greatly from a few months to several years. Because the timeline can be long and the process can be unpredictable until a judge delivers a final decision, it’s crucial to understand the full breadth of options you have before starting on a civil litigation path.
It’s also important to know that not every lawsuit passes through the stages listed above. In fact, most civil litigation cases are resolved through settlement by agreement of the parties before they ever reach the courtroom. This can save a vast amount of time and money by avoiding the lengthy process of a trial. To understand your options and what would be best for your case, we suggest contacting one of our experienced civil litigation attorneys for a free consultation. When representing clients in pre-litigation and litigation situations, our experienced civil litigation attorneys work aggressively and intelligently to resolve the case as quickly as possible. We have experience representing both plaintiffs and defendants, and are confident we can represent your needs at a fair price with no sacrifice in quality.
Before Filing a Lawsuit
Someone owes me money—should I sue or is it not worth it?
It depends on how much you’re owed, whether the other party has assets or income to collect from, and how much it will cost to pursue the case. An attorney can help you weigh the potential recovery against the likely legal fees and assess whether litigation makes financial sense—or whether a demand letter or settlement might be a better path.
How do I know if I have a strong case?
A strong case requires evidence that the other party had a legal obligation to you, they breached that obligation, and you suffered actual damages as a result. An attorney can review your facts and documents to assess the strength of your claims, identify potential weaknesses, and give you a realistic picture of your chances of success.
What’s the difference between small claims court and regular civil court?
In Arizona, small claims court (part of Justice Court) handles disputes up to $3,500, offers simplified procedures, and typically doesn’t involve attorneys. Regular civil court handles larger claims with more formal rules, discovery, and longer timelines. For amounts between $3,500 and $10,000, Justice Court still applies but with slightly more formal procedures.
How much does it cost to file a lawsuit?
Filing fees vary depending on the court and the amount in dispute—ranging from under $100 in small claims court to several hundred dollars in Superior Court. However, filing fees are just the beginning; the real cost of litigation includes attorney fees, discovery expenses, expert witnesses, and the time you’ll spend away from your business.
Is there a deadline for filing a lawsuit (statute of limitations)?
Yes, and missing the deadline means losing your right to sue entirely. In Arizona, the statute of limitations varies depending on the type of claim—for example, six years for written contracts, three years for oral contracts, and two years for most personal injury and property damage claims. Consult an attorney promptly to ensure you don’t miss your window.
Should I try to settle before filing suit?
In most cases, yes. A demand letter or settlement negotiation can often resolve disputes faster and more cheaply than litigation. Filing a lawsuit should generally be a last resort after other efforts have failed—though sometimes the threat of litigation is what brings the other side to the table.
What should I do to preserve evidence if I think I might need to sue?
Gather and save everything related to the dispute—contracts, emails, text messages, invoices, photos, and any other documentation that supports your claims. Avoid deleting electronic files or communications, and consider sending a written preservation notice to the other party if you believe they have relevant evidence that might be destroyed.
Being Sued
I just got served with a lawsuit—what do I do now?
Don’t panic, but don’t ignore it either. Note the deadline to respond (typically 20 days in Arizona for Superior Court cases) and contact an attorney immediately. Failing to respond in time can result in a default judgment against you, meaning the other side wins automatically without you having a chance to defend yourself.
How long do I have to respond to a complaint?
In Arizona Superior Court, you generally have 20 calendar days from the date you were served to file a written response. If you were served outside of Arizona, you may have 30 days. These deadlines are strict, so contact an attorney as soon as possible to ensure your response is filed on time.
What happens if I ignore a lawsuit?
If you fail to respond by the deadline, the other party can ask the court to enter a default judgment against you. This means they win the case without having to prove anything at trial, and you could be liable for the full amount they’re claiming—plus interest, attorney fees, and court costs in some cases.
Can I countersue the person who sued me?
Yes, if you have valid claims against the plaintiff, you can file a counterclaim as part of your response to the lawsuit. This is often an effective strategy when both parties share fault or when the plaintiff’s lawsuit is itself a response to something they did wrong.
Should I try to settle or fight the case?
That depends on the strength of the claims against you, the cost of defending the case, and your appetite for risk. Many cases settle because litigation is expensive and unpredictable for both sides. An attorney can help you evaluate your options and negotiate a settlement that makes sense—or mount a strong defense if fighting is the better choice.
Will my business insurance cover this lawsuit?
It might, depending on your policy and the nature of the claims. General liability policies often cover certain lawsuits, such as claims for bodily injury or property damage. Review your policy and notify your insurance carrier promptly—many policies require timely notice as a condition of coverage.
The Litigation Process
How long does a civil lawsuit take from start to finish?
Most civil cases take anywhere from several months to two years or more, depending on the complexity of the case, the court’s schedule, and whether the parties engage in extensive discovery or motion practice. Many cases settle before trial, which can shorten the timeline significantly.
What is discovery and what will I have to provide?
Discovery is the process where both sides exchange information and evidence before trial. You may be required to answer written questions (interrogatories), produce documents (requests for production), and respond to requests to admit certain facts. Discovery can be time-consuming and expensive, but it’s essential for building your case—or defending against the other side’s claims.
Will I have to testify or give a deposition?
Most likely, yes. A deposition is sworn testimony given before trial, where the other side’s attorney asks you questions while a court reporter records everything. Your answers can be used against you at trial, so it’s important to prepare thoroughly with your attorney beforehand.
What’s the difference between mediation, arbitration, and going to trial?
Mediation is a voluntary negotiation facilitated by a neutral third party—the mediator doesn’t decide the case but helps the parties reach a settlement. Arbitration is more like a private trial where an arbitrator hears evidence and makes a binding decision. Trial is the formal court process where a judge or jury decides the outcome based on the evidence and the law.
Can I be forced into arbitration instead of going to court?
Yes, if you signed a contract with an arbitration clause. Many business contracts, employment agreements, and vendor agreements include provisions requiring disputes to be resolved through arbitration rather than litigation. Courts generally enforce these clauses, so it’s important to understand what you’re agreeing to before you sign.
What percentage of cases settle before trial?
The vast majority—often cited as 90-95% of civil cases—settle before reaching trial. Settlement is usually preferable because it’s faster, cheaper, and allows both parties to control the outcome rather than leaving the decision to a judge or jury.
Costs and Fees
How much will it cost to hire an attorney for litigation?
Litigation costs vary widely depending on the complexity of the case and how far it goes. Simple matters might cost a few thousand dollars, while complex cases that go to trial can cost tens of thousands or more. Most litigation attorneys charge hourly rates, though some cases may be handled on a contingency basis.
What’s the difference between hourly fees and contingency fees?
With hourly billing, you pay for the attorney’s time regardless of the outcome. With a contingency fee, the attorney only gets paid if you win—typically a percentage of the recovery (often one-third). Contingency arrangements are common in plaintiff-side cases with clear damages but are rare for defendants or in business disputes.
Can I recover my attorney fees if I win?
In Arizona, each party generally pays their own attorney fees unless a contract, statute, or specific legal rule allows the winner to recover fees. Many business contracts include attorney fee provisions, which is why it’s important to review your contracts carefully before and during litigation.
What are court costs and who pays them?
Court costs include filing fees, service of process fees, deposition transcript costs, and similar expenses. The prevailing party can usually recover court costs from the losing party, though the judge has some discretion. Court costs are separate from attorney fees, which follow different rules.
Judgments and Collections
I won my case—now how do I actually collect the money?
Winning a judgment is only half the battle—the court doesn’t collect the money for you. If the other party doesn’t pay voluntarily, you’ll need to use post-judgment collection tools like wage garnishment, bank levies, or liens on property. An attorney can help you identify the debtor’s assets and pursue collection through the appropriate legal channels.
What can I do if the other party won’t pay the judgment?
You have several legal options to force collection, including garnishing wages, levying bank accounts, placing liens on real property, and seizing certain personal property. The right approach depends on what assets the debtor has—if they have nothing to collect from, even a valid judgment may be difficult to enforce.
Can I garnish wages or seize assets to collect a judgment?
Yes, once you have a judgment, Arizona law allows you to garnish a portion of the debtor’s wages (subject to certain limits) and levy bank accounts or other assets. You’ll need to follow specific legal procedures and may need to conduct post-judgment discovery to locate assets.
How long is a judgment enforceable in Arizona?
In Arizona, a judgment is enforceable for five years and can be renewed for additional five-year periods if you take action before it expires. Interest accrues on the judgment amount at the statutory rate, so the total owed can grow over time.
What’s the difference between a judgment and actually getting paid?
A judgment is a court order that says someone owes you money—but it doesn’t guarantee you’ll actually collect it. If the debtor has no income or assets, or hides what they have, collection can be difficult or impossible. This is why it’s important to evaluate a potential defendant’s ability to pay before investing in litigation.
Business-Specific Litigation
A former employee is suing me—what are my options?
Take the lawsuit seriously and contact an attorney immediately. Review the claims carefully, gather all relevant employment records and documentation, and check whether your employment practices liability insurance (EPLI) covers the claim. Many employment disputes can be resolved through mediation or settlement, but you’ll want experienced counsel guiding your response.
Someone posted a false review online—can I sue for defamation?
Potentially, if the review contains false statements of fact (not just opinions) that have harmed your business. However, defamation cases are difficult to win and can be expensive to pursue. Consider whether a measured response, requesting removal from the platform, or simply moving on might be more practical than litigation.
A vendor breached our contract—what are my remedies?
Your remedies depend on what the contract says and the nature of the breach. You may be entitled to monetary damages, specific performance (forcing them to fulfill the contract), or termination of the agreement. Review your contract carefully—including any limitation of liability or dispute resolution clauses—and document your damages thoroughly.
My business partner and I are in a dispute—what are my options?
Start by reviewing your operating agreement or partnership agreement, which may include provisions for resolving disputes, buying out a partner, or dissolving the business. Options range from negotiation and mediation to formal litigation or dissolution proceedings. These disputes are often emotionally charged, so having an attorney advocate for your interests can help you navigate the situation more effectively.
How do I protect my business assets if I’m facing a lawsuit?
Once a lawsuit is filed or reasonably anticipated, your options become limited—transferring assets at that point can be considered fraudulent conveyance. The best protection is proactive planning before disputes arise, including proper business entity structure, adequate insurance, and well-drafted contracts. If you’re already facing a claim, talk to an attorney about legitimate ways to protect your interests.
Alternatives to Litigation
What is mediation and how does it work?
Mediation is a voluntary process where a neutral third party helps both sides negotiate a settlement. The mediator doesn’t decide who’s right or wrong—they facilitate discussion and help identify common ground. Mediation is typically faster, cheaper, and less adversarial than litigation, and gives both parties more control over the outcome.
Is arbitration faster and cheaper than going to court?
Often, but not always. Arbitration can be quicker because it avoids crowded court dockets and has streamlined procedures. However, arbitrator fees can be substantial, and limited discovery may disadvantage one party. Whether arbitration saves money depends on the complexity of the dispute and how the arbitration is structured.
Can I require customers or employees to sign arbitration agreements?
Yes, and many businesses do. Arbitration clauses can help you avoid costly litigation and keep disputes private. However, these agreements must be carefully drafted to be enforceable, and recent legal developments have imposed some limits on arbitration clauses—particularly in employment and consumer contexts.
What’s the difference between binding and non-binding arbitration?
In binding arbitration, the arbitrator’s decision is final and enforceable like a court judgment—you generally cannot appeal or retry the case. In non-binding arbitration, either party can reject the decision and proceed to litigation if they’re not satisfied with the outcome. Most commercial arbitration clauses call for binding arbitration.