What legal term refers to the act of making a formal complaint in court for compensation?

Litigation is the legal term that refers to the process of taking legal action or making a formal complaint in court to seek compensation or resolution for a dispute. This term encompasses the entire process of a legal case, from the initial filing to the court proceedings and any potential verdict. In the context of the question, litigation is specifically about bringing a case before a court to address grievances, often involving claims for damages or other legal remedies.

The other options represent different legal concepts. Negligence is a standard in tort law that refers to the failure to take proper care in doing something, resulting in damage or injury to another. Settlement refers to an agreement reached between parties to resolve a dispute without continuing to trial. Arbitration is a form of alternative dispute resolution where a neutral third party makes a binding decision outside of the court system. While related to legal processes, these terms do not specifically denote the act of filing a formal complaint in court.