April 20, 2026
When businesses face litigation, the initial focus is often on whether they will win the case. While that is an important consideration, as explained by Stephanie Adamo and Tamera Dietrich Westerberg in “When to Litigate and When to Walk Away” the answer alone does not capture the full reality of litigation. Legal outcomes cannot be viewed in isolation from the broader business implications that accompany a dispute.
Litigation involves significant business costs beyond legal fees. It can require substantial time and attention from leadership and employees, diverting resources away from core operations. It may also affect commercial relationships, including those with customers, vendors, and business partners, particularly where cooperation or ongoing interaction is required during the dispute. In some cases, litigation may also raise reputational considerations or attract attention from regulators or other external stakeholders.
Because of these broader impacts, companies should move beyond the question of whether they can win and instead evaluate whether litigation is the right business decision in context. This includes considering the overall cost of the dispute, its impact on internal operations, the strategic goals of the business, and the potential effects on relationships and timing.
Deciding not to litigate, or resolving a matter early, can be a strategic business choice. In many situations, early resolution may help preserve resources, reduce disruption, and allow a company to remain focused on its long-term objectives.
For a more detailed discussion, please see the full article here [1].