There is no agreed definition of commercial litigation, but it has been described as when two or more businesses have a legal dispute which has escalated to court proceedings. There are other instances of commercial litigation disputes that exist, including if a business was to commence proceedings against the government for breaching a tender contract.

It becomes more difficult when individuals start getting involved in the court proceedings. It would be unusual for lawyers to consider an employee bringing an action against their employer (a business) as commercial litigation, although theoretically there is a commercial aspect and a litigation aspect to the proceedings, and for all intents and purposes could be considered commercial litigation.

Whilst the usage of the term commercial litigation can be very broad, the most common usage of the phrase is intended to convey litigation involving business versus business in court proceedings excluding small claims or minor debt recovery.