Mennonites generally avoid settling disagreements in court, whether the disagreement/problems are between Mennonites or not. This position is based on scripture such as:
If your brother sins against you, go and show him his fault, just between the two of you. If he listens to you, you will have won your brother over. But if he will not listen, take one or two others along, so that every matter may be established by the testimony of two or three witnesses. If he refuses to listen to them, tell it to the church; and if he refuses to listen even to the church, treat him as you would a pagan or a tax collector. (Matthew 18:15-17). See also 1 Corinthians 6: 1-7)
Because of these and other scriptures, and Mennonite positions regarding peace and nonresistance (which you can read more about in the Confession of Faith in Mennonite Perspective article on “Peace, Justice, and Nonresistance,”in general Mennonites do not like the litigious nature of society-at-large and prefer instead to use mediation or other ways to solve conflicts.
Mennonites can and do bring lawsuits in certain situations where there seems to be no other recourse, and they generally remain in good standing with the church.