Litigation is the most frequently used dispute resolution method to settle large commercial disputes in Japan. The Code of Civil Procedure (CCP), which was significantly amended in 1996 and became effective in 1998, provides the following system to efficiently resolve disputes:

-The court conducts preparatory proceedings to clarify and ascertain the material issues and evidence at an early stage. These issues are mainly identified through the exchange of written briefs and evidence, and periodic hearings. The court may allow one of the parties to attend a hearing in the preparatory proceedings by teleconference but only when the other party attends the hearing in person.

-Examination of witnesses and parties must be conducted as efficiently as possible, focusing on the material issues legitimately in dispute after completion of the preparatory proceedings.