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As a business owner, you’ll face a myriad of hard decisions as you grow. One of the most challenging choices for business owners is deciding when it’s time to pursue legal action against a party. Perhaps they aren’t paying their bills. Or broke a promise. Regardless, it’s important to consider what the litigation process looks like in Pennsylvania so you may be adequately informed before making this decision.
If the case has an amount in controversy up to $12,000, it goes to the Court of Common Pleas. Many of these cases are first sent to compulsory arbitration before a panel of three attorneys. The dollar limit for arbitration is set by each county, up to a state maximum of $50,000. In Chester County it is $35,000, while Philadelphia uses the full $50,000. A case above the county’s arbitration limit proceeds on the court’s trial track, and a party who wants a jury must demand one in writing. A party unhappy with an arbitration award can appeal for a new trial, called a trial de novo, generally within 30 days.
What’s the Litigation Process in Pennsylvania?
Litigation is a legal process that allows individuals and entities to seek resolution to their disputes through the court system. In Pennsylvania, as in other states, litigation follows a structured and well-defined procedure to ensure a fair and just outcome for all parties involved.
The litigation process typically consists of the following stages:
- Pleadings. The litigation process commences with the filing of a complaint by the plaintiff, outlining the basis of their claim and the relief sought. The defendant must respond to the complaint with an answer, admitting or denying the allegations. If the defendant believes that the plaintiff’s complaint fails to state a claim, they can file a motion to dismiss.
- Discovery. This is often the longest and most crucial phase in the litigation process, allowing both parties to gather evidence to support their claims or defenses. The discovery process may include: (1) Interrogatories: Written questions that parties must answer under oath. (2) Depositions: Oral testimonies given under oath, recorded by a court reporter. (3) Requests for Production: Requests to produce relevant documents, records, or other evidence. (4) Requests for Admission: Requests to admit or deny certain facts or documents.
- Pre-Trial Motions. Before trial, either party can file various pre-trial motions to address specific issues. These motions may include a motion for summary judgment, seeking a resolution of the case based on undisputed facts and applicable law. The court may grant summary judgment if it finds that there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law.
- Settlement Conferences and/or Mediation. In Pennsylvania, as in many other states, courts may require parties to attend settlement conferences or participate in mediation to explore the possibility of reaching a resolution before proceeding to trial. Mediation involves a neutral third party (mediator) facilitating negotiations between the parties to reach a mutually acceptable settlement.
- Trial. If the case remains unresolved after the discovery and pre-trial stages, it proceeds to trial. During the trial, both parties present their evidence and arguments to the judge or jury, depending on the type of trial chosen. In Pennsylvania, civil trials can be either bench trials (decided by a judge) or jury trials (decided by a jury). Each side has the opportunity to call witnesses, introduce exhibits, and make opening and closing statements.
- Verdict & Judgment.Following the trial, a verdict is rendered either by the judge or the jury. If the verdict is in favor of the plaintiff, the court will enter a judgment in their favor, specifying the relief awarded, such as monetary damages or injunctive relief.
- Appeal. If dissatisfied with the trial court’s decision, either party has the right to appeal to a higher court. In Pennsylvania, the intermediate appellate court is the Superior Court, and the highest appellate court is the Supreme Court. The appellate court reviews the trial court’s decisions for errors of law and abuse of discretion, rather than re-trying the case or re-evaluating evidence.
Let’s Talk Plaintiffs
Should I Sue?
Suppose someone signed a contract, only to break it later. You’ve got a copy of the contract, and you can prove the other party is wrong. You’ve tried to resolve the dispute many times, only to have the person ignore your requests. If this happens, it may be a good time to evaluate whether you want to bring a lawsuit to enforce the contract.
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What are my damages? Will I be able to collect on the damages?
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Can I locate the person I want to sue?
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Is the cost of litigation worth it? Am I ready for the stress it may bring?
Those questions matter because winning and collecting are different things. A judgment is only as good as your ability to enforce it, and a defendant with no assets and no income is a defendant you may never collect from. We would rather tell you that honestly at the start than after you have spent money proving a point. When the numbers do work, litigation can be the right and necessary tool, and we pursue it accordingly.
Let’s Talk Defendants
What if I Am Sued?
Remember, there is no “bad guy” in litigation. Just because you have been named a defendant, this does not mean you’re in the wrong. Often, lawsuits are a mixture of fault and rarely is a defendant solely liable. Although it may be scary to see your name listed as a defendant in a lawsuit, at AttorneyX, we’ll help you formulate a legal strategy.
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What was the nature of the agreement?
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Did the plaintiff fail to uphold his side of the bargain?
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Are there any legal defenses I may use?
Business Litigation FAQs
I was just served with a lawsuit. What is the deadline to respond?
Sooner than you think, and missing it is the most avoidable mistake in litigation. A defendant who does not respond in time can have a default judgment entered against them, which means losing without the case ever being heard. The exact deadline depends on the court and how you were served, so the safe move is to contact a lawyer the day you are served, not the week before the response is due.
Is it always worth suing over a broken contract?
Not always, and a good litigator will tell you when it is not. The questions are whether you can prove the breach, what your damages are, whether you can actually collect, and whether the cost and stress are worth the likely recovery. We help you weigh those honestly before you commit, because the goal is a good outcome, not just a filing.
How long does business litigation take in Pennsylvania?
It ranges widely. A case resolved in arbitration or by settlement can wrap up in months, while a matter that goes through full discovery and trial can take well over a year. Most cases settle before trial. We give you a realistic timeline for your specific situation rather than a generic one, and we look for the fastest defensible resolution.
Ready to Get Started?
There’s so much more we want to tell you about forming a business if you’ll give us the chance! If you’re ready to receive experienced business law litigation advice, don’t hesitate to reach out today. We can’t wait to meet you. Did we mention every consultation is free?
