Jorge writes, "I am currently engaged in a legal battle with a family member over a piece of property in my native country. It is stuck in the courts and I am very hopeful that I will win the lawsuit. Do I have to disclose this matter to the USCIS as part of my N-400 application for citizenship? Can this jeopardize my application?"
The United States Government cares about criminal convictions because that shows poor moral character. After all, we would not like drug dealers or murderers to become Americans. Civil disputes like this one do not prove anything about your moral character. Anyone can file a claim against you for any reason, including using forged documents to prove that your property belongs to them. You have done nothing wrong but you will get stuck in courts for months or years. So go ahead and file your application and there is no need to disclose this matter because it is not required. Actually even if you lose the case and have to surrender a property or pay a fine, it does not matter.