Litigation clause: Copy, customize, and use instantly
Introduction
A litigation clause specifies how disputes will be handled if they escalate to court. It defines the procedural rules, expectations for resolving disputes, and any limitations on legal actions. This clause is critical for managing costs, protecting interests, and ensuring clarity in complex contracts.
Below are litigation clause templates tailored to different scenarios. Copy the one you need, customise it, and add it to your contract.
No-litigation clause
This clause limits the parties' ability to bring disputes to court.
The parties agree that no legal action may be initiated under this agreement unless all alternative dispute resolution methods, including mediation and arbitration, have been exhausted.
Litigation escalation process clause
This clause establishes a structured approach before filing litigation.
Before initiating litigation, the parties agree to engage in a formal escalation process, including discussions between senior management and third-party mediation. If the dispute remains unresolved within [insert time period], either party may commence litigation in accordance with this agreement.
Simplified litigation clause
This clause outlines a straightforward process for handling litigation.
Any litigation arising out of this agreement must follow simplified legal procedures, including expedited discovery and summary judgment filings, in accordance with the applicable rules of [insert jurisdiction].
Small claims litigation clause
This clause limits disputes to small claims courts for minor disagreements.
Disputes involving claims below [insert dollar amount] must be resolved exclusively in small claims court located in [insert jurisdiction].
Litigation cap clause
This clause places limits on the scope or financial exposure during litigation.
The parties agree that any legal action under this agreement will be limited to claims of no more than [insert dollar amount], except in cases of gross negligence or willful misconduct.
Joint litigation funding clause
This clause governs shared litigation costs for certain disputes.
In the event of a dispute requiring litigation, the parties agree to jointly fund legal proceedings up to [insert amount or percentage], subject to an agreement on litigation strategy and choice of counsel.
Litigation confidentiality clause
This clause ensures confidentiality during legal proceedings.
Any legal action initiated under this agreement must remain confidential to the fullest extent permitted by law. The parties agree not to disclose the existence or details of litigation to third parties without prior written consent.
Litigation time bar clause
This clause sets a strict deadline for initiating legal action.
Any litigation arising under this agreement must be initiated within [insert time period] from the date the cause of action arises. Failure to do so will result in a waiver of the right to bring such claims.
Litigation settlement authority clause
This clause defines settlement authority during legal proceedings.
Each party agrees to designate a representative with full settlement authority to participate in any settlement discussions or negotiations during litigation.
Multi-party litigation clause
This clause governs disputes involving multiple parties to the agreement.
In the event of litigation involving more than two parties, the parties agree to cooperate in consolidating claims and minimizing procedural delays, subject to the rules of [insert jurisdiction].
Litigation carve-out clause
This clause excludes specific disputes from being resolved through litigation.
The parties agree that disputes related to [specific issues] will not be subject to litigation and must be resolved exclusively through [mediation/arbitration/alternative dispute mechanism].
Litigation liability clause
This clause addresses liability for costs associated with litigation.
The parties agree that the non-prevailing party in any litigation arising under this agreement will bear the reasonable attorney’s fees and court costs incurred by the prevailing party.
Litigation opt-out clause
This clause allows one party to opt out of court proceedings under certain conditions.
Either party may opt out of litigation for disputes under [specific dollar threshold] by providing written notice within [insert time period] after the cause of action arises.
No-class-action litigation clause
This clause restricts parties from pursuing collective legal actions.
The parties agree that any disputes arising under this agreement must be resolved on an individual basis and cannot be brought as a class, collective, or representative action.
Litigation with pre-litigation deposit clause
This clause requires parties to deposit funds before initiating litigation.
Any party wishing to initiate litigation under this agreement must deposit an amount of [insert amount] with an agreed escrow account to cover preliminary legal fees. Failure to provide this deposit will render the claim inadmissible.
Third-party litigation funding restriction clause
This clause prohibits external funding for litigation.
Neither party may seek third-party funding for litigation related to this agreement without prior written consent from the other party.
No-appeal litigation clause
This clause limits parties to a single court decision without appeal.
The parties agree that any litigation arising under this agreement will be subject to a single adjudication without the right of appeal, except in cases of judicial misconduct or clear procedural error.
Discovery limitation litigation clause
This clause restricts the scope of discovery in court proceedings.
The parties agree to limit the scope of discovery in any litigation arising under this agreement to documents directly related to the issues in dispute, excluding privileged or unrelated materials.
Litigation fee cap clause
This clause caps the legal fees recoverable in litigation.
In the event of litigation, recoverable legal fees will be capped at [insert dollar amount], regardless of the actual costs incurred by the prevailing party.
Cross-claims prohibition clause
This clause prevents parties from filing cross-claims during litigation.
The parties agree not to initiate cross-claims or third-party claims in any litigation arising under this agreement, focusing solely on the dispute between the original parties.
Litigation-specific confidentiality agreement clause
This clause imposes strict confidentiality on all litigation-related communications.
All communications, filings, and proceedings related to litigation under this agreement must remain confidential and may not be disclosed to any third party without the express written consent of both parties.
Litigation with cost-sharing agreement clause
This clause requires both parties to share litigation costs upfront.
The parties agree to share all court filing fees, administrative costs, and initial legal expenses equally for any litigation initiated under this agreement, unless otherwise determined by the court.
Litigation alternative selection clause
This clause allows a choice of alternatives to litigation if agreed post-dispute.
After a dispute arises, the parties may mutually agree to resolve the issue through arbitration, mediation, or alternative mechanisms instead of proceeding with litigation as outlined in this agreement.
Litigation funding disclosure clause
This clause requires transparency about litigation funding sources.
Any party initiating litigation under this agreement must disclose the source and terms of any third-party litigation funding, including financial backers, to the opposing party and the court.
Interim relief litigation clause
This clause allows parties to seek urgent court orders during disputes.
Either party may seek interim or injunctive relief from the courts of [insert jurisdiction] to prevent immediate harm or preserve contractual rights while the primary litigation proceeds.
Litigation exclusion for minor breaches clause
This clause exempts trivial breaches from litigation.
The parties agree that no litigation may be initiated for breaches deemed minor or non-material under this agreement. Disputes over materiality will be resolved by a pre-litigation mediator.
Litigation without punitive damages clause
This clause prevents claims for punitive damages in court.
The parties agree that no claims for punitive, exemplary, or special damages may be pursued in any litigation arising under this agreement, regardless of the nature of the dispute.
Specialized court litigation clause
This clause directs disputes to a specific type of court.
Any disputes under this agreement involving intellectual property will be exclusively litigated in the [insert specialized court, e.g., Federal Court for IP Disputes], located in [insert jurisdiction].
Multi-jurisdictional litigation clause
This clause addresses disputes spanning multiple jurisdictions.
Disputes involving obligations in multiple jurisdictions may be litigated simultaneously in the relevant courts of [insert jurisdictions], provided the parties agree to consolidate any overlapping claims.
Limitation on multiple claims clause
This clause limits the number of claims a party can bring in court.
The parties agree to consolidate all disputes arising under this agreement into a single legal action and waive the right to bring multiple claims arising from the same set of facts.
Litigation with proportional liability clause
This clause limits liability based on each party's contribution to the dispute.
In any litigation under this agreement, each party’s liability will be proportionate to their contribution to the breach or dispute, as determined by the court.
Multi-step litigation clause
This clause establishes distinct stages for litigation.
Litigation under this agreement will proceed in defined stages, including (i) pre-trial mediation, (ii) expedited discovery, and (iii) resolution by bench trial, unless otherwise agreed by both parties.
Litigation stay for regulatory approval clause
This clause pauses litigation if regulatory permissions are needed.
If a dispute under this agreement involves unresolved regulatory approval, all litigation proceedings will be stayed until the necessary permissions or rulings are obtained.
Counterclaim limitation clause
This clause limits the scope of counterclaims in litigation.
The parties agree that counterclaims in litigation under this agreement will be restricted to issues directly related to the original claim, excluding unrelated matters.
Litigation priority clause
This clause prioritizes certain claims over others in court.
In the event of multiple disputes, the parties agree that claims related to [specific topic, e.g., confidentiality] will take priority in litigation and must be resolved before addressing other matters.
Litigation postponement clause
This clause allows for temporary delays in litigation under certain conditions.
Either party may request a postponement of litigation proceedings for up to [insert time period] in the event of unforeseen circumstances, such as natural disasters or critical business interruptions.
No-contingency litigation clause
This clause prohibits attorneys from working on contingency fee arrangements.
The parties agree that no litigation under this agreement will involve attorneys compensated on a contingency fee basis, ensuring all legal fees are paid directly by the engaging party.
Litigation acceleration clause
This clause fast-tracks litigation proceedings under certain conditions.
The parties agree to accelerate all litigation procedures, including pre-trial motions and discovery, in cases where the dispute materially affects ongoing business operations or time-sensitive obligations.
No third-party beneficiary litigation clause
This clause prevents non-parties from initiating litigation.
No third-party beneficiaries are granted the right to initiate or participate in litigation arising under this agreement, unless explicitly authorized in writing by both parties.
Litigation preservation of evidence clause
This clause obligates both parties to preserve relevant evidence for litigation.
Each party agrees to preserve all relevant documents, records, and communications related to any dispute arising under this agreement until the resolution of litigation proceedings.
Cross-border litigation timing clause
This clause accounts for delays in international litigation.
In the event of cross-border disputes, the parties agree to extend filing deadlines and procedural timelines by [insert time period] to account for jurisdictional or administrative delays.
Litigation without setoff clause
This clause prohibits offsetting claims during litigation.
No party may offset any damages, claims, or obligations against amounts owed during litigation proceedings under this agreement.
Litigation burden of proof clause
This clause defines the burden of proof in disputes.
In any litigation under this agreement, the party initiating the claim bears the burden of proof to demonstrate a material breach or violation of terms.
Litigation with capped damages clause
This clause limits the total damages available in court.
The parties agree that recoverable damages in any litigation under this agreement will not exceed [insert dollar amount], regardless of the nature or severity of the claim.
Multi-phase litigation clause
This clause organizes litigation into distinct phases for efficiency.
Litigation proceedings under this agreement will be divided into phases, including preliminary hearings, focused discovery, and expedited resolution, to minimize costs and delays.
Litigation with joint defense clause
This clause allows for shared defense in disputes involving third parties.
In cases involving claims by third parties, the parties agree to coordinate and share legal defense strategies, subject to mutual approval of counsel and cost-sharing terms.
Litigation limitation on punitive measures clause
This clause restricts punitive or exemplary claims during litigation.
The parties agree to waive all claims for punitive or exemplary damages in any litigation under this agreement, limiting recovery to actual and direct damages only.
Stay of litigation for force majeure clause
This clause pauses litigation during uncontrollable events.
All litigation proceedings under this agreement will be stayed for the duration of any force majeure event that materially impedes a party’s ability to participate in legal proceedings.
Litigation decision-maker clause
This clause defines who within each organization can authorize litigation.
Each party agrees to designate a senior executive or legal representative with sole authority to initiate or approve litigation under this agreement.
Litigation cooperation clause
This clause obligates parties to assist each other in legal processes.
The parties agree to cooperate fully in litigation proceedings, including sharing non-privileged documents, providing witnesses, and complying with all procedural requirements.
Litigation tied to performance clause
This clause requires continued performance of the contract during litigation.
Both parties agree to continue performing their contractual obligations during the litigation process, except for the specific provisions directly under dispute.
Litigation non-disparagement clause
This clause prohibits public statements about litigation.
Neither party may make public statements or disclosures about the litigation proceedings under this agreement without prior written consent from the other party.
Litigation venue flexibility clause
This clause allows the parties to change the litigation venue by mutual consent.
The parties may mutually agree to alter the venue for any litigation arising under this agreement, provided the change is documented in writing prior to the initiation of legal proceedings.
Litigation on material breach only clause
This clause restricts litigation to disputes involving significant contract breaches.
The parties agree that litigation may only be initiated for disputes involving a material breach of this agreement, as determined by the court or through pre-litigation mediation.
Litigation monitoring clause
This clause requires periodic reporting during legal proceedings.
Each party agrees to provide the other with regular updates on the status of litigation proceedings, including timelines, filings, and material developments, to ensure transparency.
Prohibited forum litigation clause
This clause disallows specific courts or jurisdictions from being used for litigation.
The parties agree that no litigation arising under this agreement may be brought in the courts of [insert prohibited jurisdiction], regardless of convenience or location.
Litigation withdrawal clause
This clause allows parties to withdraw a lawsuit under certain conditions.
Either party may withdraw litigation proceedings without penalty if the opposing party resolves the underlying breach within [insert time period] of receiving written notice.
Litigation contingent on mediation clause
This clause prevents litigation unless mediation has failed.
Litigation under this agreement may only be initiated if the parties have first attempted mediation in good faith and the mediation process has concluded without resolution.
Specific claims litigation clause
This clause limits litigation to pre-defined issues.
The parties agree that only disputes related to [insert specific issues, e.g., intellectual property rights or payment terms] may be resolved through litigation, with all other disputes subject to alternative dispute resolution.
Litigation preclusion clause
This clause precludes certain issues from being litigated entirely.
The parties agree that disputes related to [specific topics, e.g., minor service delays] are expressly excluded from litigation and must be resolved through non-binding arbitration or negotiation.
Litigation with expedited judgment clause
This clause prioritizes quick resolutions through summary judgments.
Any litigation arising under this agreement will proceed under summary judgment rules where applicable, to expedite the resolution of disputes and minimize procedural delays.
Litigation with third-party waiver clause
This clause prevents third parties from interfering in legal proceedings.
The parties agree to waive the involvement of third parties, including affiliates or subsidiaries, in any litigation arising under this agreement, unless expressly required by law.
Cross-border litigation synchronization clause
This clause ensures simultaneous resolution of disputes across jurisdictions.
For disputes involving multiple jurisdictions, the parties agree to coordinate litigation timelines and filings to ensure consistent rulings and minimize procedural conflicts.
Litigation risk-sharing clause
This clause outlines shared responsibility for litigation-related risks.
The parties agree to share the financial and reputational risks associated with litigation under this agreement proportionate to their respective stakes in the disputed matter.
Litigation pre-filing notification clause
This clause mandates advance notice before initiating litigation.
No party may initiate litigation under this agreement without providing the opposing party with [insert time period] written notice, outlining the claims and proposed remedies.
No-suspension litigation clause
This clause ensures uninterrupted contract performance despite litigation.
Both parties agree that initiating litigation under this agreement will not suspend or terminate their obligations under other non-disputed provisions of the contract.
Limited liability in litigation clause
This clause restricts liability exposure during legal disputes.
The parties agree that liability for damages in any litigation under this agreement will be limited to direct damages and exclude any consequential, incidental, or special damages.
Litigation with ADR opt-out clause
This clause allows parties to skip ADR processes in favor of litigation.
Either party may bypass alternative dispute resolution mechanisms outlined in this agreement and proceed directly to litigation upon providing written notice to the opposing party.
Multi-claim consolidation clause
This clause requires related claims to be consolidated into one litigation.
The parties agree to consolidate all claims arising from this agreement into a single litigation proceeding, ensuring efficiency and avoiding duplicative legal actions.
Litigation documentation retention clause
This clause mandates the retention of records for litigation purposes.
Both parties agree to retain all relevant records, communications, and documents related to the contract for [insert time period] following the termination of this agreement to ensure availability for potential litigation.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.