No, most business lawsuits in New York never reach a trial. The vast majority resolve earlier, through settlement, dismissal, or a pretrial motion that ends the case before a jury is ever involved. A New York commercial litigation attorney can help a business understand where its dispute falls on that spectrum and develop a strategy accordingly. Here is a look at how business lawsuits actually end in New York, and when a trial becomes necessary.
Why Do So Few Business Lawsuits Reach Trial?
Trials are expensive, time-consuming, and unpredictable. Every step, from written discovery to depositions to outside witnesses, adds cost, and a jury’s decision is never a sure thing even in a strong case. Businesses also have to weigh the value of privacy and an ongoing relationship. A trial plays out in open court and becomes part of the public record, while a settlement can be resolved quietly, sometimes with a confidentiality clause attached. For companies that may want to keep doing business with the other side down the road, or that simply want a dispute behind them, that privacy and control carry real weight. These pressures push most business disputes toward an earlier resolution long before a courtroom is involved.
What Happens Before a Case Ever Gets Close to Trial?
A lawsuit moves through several stages before trial becomes a realistic possibility, and a case can end at any one of them.
- Pleadings. The case begins with a complaint and answer, and a defendant may move to dismiss claims that are legally insufficient before discovery even starts.
- Discovery. The parties exchange documents, answer written questions, and take depositions. This phase often reveals the true strengths and weaknesses of each side’s position, at which point many cases begin to move toward settlement.
- A party can move for summary judgment under CPLR 3212, asking the court to decide some or all of the case without a trial because there is no genuine factual dispute left for a jury to resolve.
- Settlement negotiations. These can happen at any point, from a phone call before the complaint is even filed to a conversation on the courthouse steps.
Any of these stages can end the case outright, which is why a comparatively small share of filed lawsuits ever reach trial.
Does New York Push Business Disputes Toward Mediation?
Yes, in many cases. New York courts actively encourage the resolution of commercial disputes outside the courtroom. In the Commercial Division, many cases are presumptively referred to mediation early in the litigation, often with a free initial mediation session available through the court’s program. A neutral mediator meets with the parties and their attorneys, reviews the issues, and works to facilitate a resolution, all on a confidential basis that cannot be used against either side if the case does not settle. Judges also regularly hold their own settlement conferences alongside these formal ADR programs. The combined effect is that a New York business lawsuit typically has several structured opportunities to resolve before trial, not just one.
When Does a Business Lawsuit Actually Go to Trial?
Some cases genuinely need a trial. This usually happens when the parties have a real, material disagreement about the facts, such as competing accounts of what a contract meant or whether a party actually breached a duty, and no earlier motion or settlement conference has resolved it. It can also happen when the amount at stake is large enough, or the principle involved important enough, that neither side is willing to compromise. Trial becomes the only remaining way to get a binding answer once negotiation, mediation, and pretrial motions have all been exhausted, or when one side is confident enough in its position to reject every settlement offer on the table.
What Should a Business Expect If a Trial Is Necessary?
Once a case is trial-bound, the same discovery and motion work already done does not go to waste. It becomes the foundation for opening statements, witness examinations, and evidence at trial. Litigation counsel typically prepares a pretrial order, exhibit and witness lists, and jury instructions well before the trial date. Even at this late stage, many New York judges continue to press for settlement, and it is not unusual for a case to resolve during jury selection or in the days immediately before opening statements.
Whether a dispute is heading toward an early settlement or a trial, understanding where a case sits in that process helps a business make better decisions along the way. Contact Levy Goldenberg LLP to talk through the options for your matter.