Litigation as a Business Tool: How to Use It Responsibly and Strategically

Written by: Callie Kyhl

In the business world, litigation is often viewed as a last resort—something to be avoided if possible, and feared when necessary. But the reality is more nuanced. When used responsibly, litigation can be a legitimate and strategic business tool. It can help enforce contracts, protect intellectual property, preserve market integrity, and level the playing field against unfair competition.

Still, litigation carries real risks: financial, reputational, and relational. That’s why it’s critical for business leaders to approach it not just aggressively, but wisely and ethically. Here’s how to think about using litigation as a tool—not a weapon—and doing so responsibly.

1. Understand the Purpose Behind the Action

Litigation should serve a clear, strategic purpose. Are you trying to:

• Enforce a breached contract?
• Protect proprietary information?
• Deter competitors from unfair practices?
• Seek damages for actual financial harm?

Without a specific objective that aligns with broader business goals, litigation becomes an emotional or reactive decision—rarely a wise one. Responsible use starts with clarity.

2. Evaluate the Costs—Beyond the Legal Fees

Litigation is expensive, and not just in terms of legal fees. It consumes executive time, distracts employees, can damage business relationships, and carries reputational risk.

Before initiating a suit, consider:

• What is the likely return on investment on this litigation?
• Could this dispute be resolved through mediation or arbitration?
• What will this do to our brand, especially if the case becomes public?

Think long-term. A short-term legal win could lead to long-term business consequences.

3. Avoid Weaponizing Litigation for Competitive Suppression

Some companies use lawsuits to tie up smaller competitors in court, knowing they may not have the resources to defend themselves. This may be legal, but it’s not ethical—and courts are increasingly wary of abusive litigation practices.

If litigation becomes a tool of intimidation rather than justice, it can backfire. Judges can sanction parties for bad-faith litigation, and your company’s reputation may suffer lasting damage.

Responsible litigation upholds the principles of fairness and integrity.

4. Preserve the Option by Maintaining Clean Practices

If you’re going to litigate, your own hands must be clean. Judges and juries tend to look unfavorably on businesses that breach their own agreements or ignore regulatory responsibilities.

Maintain strong documentation, follow your contracts, respect intellectual property, and engage transparently with stakeholders. This not only protects your business—it strengthens your position should litigation become necessary.

5. Use It to Set Industry Standards or Clarify Ambiguities

In some cases, a lawsuit can help clarify gray areas in the law or establish important precedents in your industry. For example, a trademark case may define the boundaries of brand protection, or an antitrust suit might curb monopolistic behavior.

In this sense, litigation can play a constructive role—not just for your business, but for your industry as a whole.

6. Consider the Message You’re Sending

Litigation sends a signal: to competitors, partners, employees, and the public. Sometimes, that’s the point—demonstrating that you won’t tolerate contract violations or IP theft.

But overuse can send the wrong signal: that your company is aggressive, litigious, or difficult to work with. Consider how each lawsuit contributes to your brand narrative and business relationships.

7. Seek Counsel That Shares Your Values

Not all attorneys are the same. Some will push a “scorched earth” approach regardless of your business’s values or goals. Find legal partners who understand your long-term vision, who act strategically, and who embrace ethics and professionalism in every step of the litigation process.

Conclusion: Litigation as Strategy, Not Reaction

Litigation can be a powerful lever—but it must be pulled with care. When used strategically and ethically, it protects your interests, enforces accountability, and promotes fair business practices.

But when used recklessly or as a weapon of retaliation, it can cause more damage than it prevents.

Litigation isn’t just a legal action—it’s a business decision. Make it with the same discipline, foresight, and responsibility that guide the rest of your strategy.

Let’s connect – I can help you consider and effectively use litigation, if needed, to meet your business goals.

Need Legal Advice?
If you have questions about how these laws affect you or your business, consulting a licensed attorney is the best next step. Legal interpretations and enforcement can vary by locality, and staying proactive can help you avoid costly legal trouble.

If you have any questions, please Callie Kyhl at 703-369-4738 or info@vfnlaw.com.

This blog post is not intended to provide legal advice or substitute for the advice of legal counsel with respect to specific facts and situations. See disclaimer