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.