Litigation is the process of resolving disputes through the court system, including all activities from filing a lawsuit through trial and potential appeals. Litigation involves formal procedures including pleadings, document disclosure, examinations for discovery, and ultimately trial if the parties cannot reach settlement. Municipalities engage in litigation as both plaintiffs (bringing claims against others) and defendants (responding to claims). Common municipal litigation involves personal injury claims, contract disputes, employment matters, and challenges to municipal decisions. The litigation process is often lengthy and expensive, making settlement or alternative dispute resolution attractive when possible. Municipalities budget for legal costs and carry liability insurance.