The Coase theorem states that, under the right conditions, the parties to a property rights dispute will be able to agree on an economically optimal solution, regardless of the initial distribution of property rights.
The Coase theorem offers a potentially useful way to think about how best to resolve conflicts between competing businesses or other economic uses of scarce resources.
For the full application of the Coase theorem, there must be conditions for efficient, competitive markets and, most importantly, zero transaction costs.
In the real world, ideal economic conditions are rare, so the Coase theorem is better suited to explain the causes of inefficiency, rather than to resolve disputes.