Even though this is a legal term, In northern california circles this word can mean 2 things: relaxing, lounging around, chilling out, etc -or- (when used with the question "what") going on, happening, up.
This term is usually used as the a greeting in this form:

"Yo! Sup parry, what's litigaten'?"
-Hey! how are you my friend, what are you doing right now?

And the normal response for that question must use the same word! like so:

"oh, you know, just litigations"
-Well, typical, I'm just relaxing.

The next part of the question goes like this:

"Aight,well then what's litigaten for tonite?"
-I see, what are your plans for tonite?

"I'm bout to jus' litigate"
-No plans really, just more relaxing.
by Jedd Rizzun December 06, 2004

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