Litigation occurs when a party, the plaintiff, files suit against another party, the defendant. There can be more than one party on either side of a lawsuit. A party may consist of either an individual or a corporation. A lawsuit is brought when a party perceives that a wrong has been committed and seeks damages against the opposing party, usually for monetary damages. Sometimes, the defendant may also file a claim against the plaintiff, known as a counter-claim, if the defendant believes that he or it has been wronged by the Plaintiff. By law, there are certain time limitations within which a plaintiff must file suit, or else the plaintiff will be forever barred from exercising its legal rights and recovering. On the flip side, a defendant must respond to a lawsuit within a certain time or else risk a default judgment being rendered against the defendant. Thus, both parties to a lawsuit need to take the lawsuit seriously and should seek legal representation as soon as possible in order to protect their respective interests.

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