Difference between LITIGATION and ARBITRATION

What is litigation?

The  process of resolving disputes through formal court proceedings before a judge or jury.

What is arbitration?

A voluntary process where disputes are resolved outside the court system by one or more arbitrators chosen by the parties.

What is the first step in the litigation process?

Filing a lawsuit by submitting a complaint in court.

What does the “discovery” stage in litigation involve?

Exchange of information, documents, and evidence between parties.

Who makes decisions in litigation?

Judges or juries.

Who make decisions in arbitration?

Arbitrators selected by the parties or specified in an agreement.

Is arbitration binding?

Yes, arbitration awards are typically final and binding, with limited grounds for appeal.

How does confidentiality differ between litigation and arbitration?

Litigation is public, while arbitration is private and confidential.

What are pre-trial proceedings in litigation?

Hearings and motions that address legal issues before the trial begins.

What is the equivalent of a court judgement in arbitration?

An arbitration award.

Which process allows appeals to higher courts - litigation or arbitration?

Litigation

Which method generally offers a faster resolution - litigation or arbitration?

Arbitration

What is one key advantage of arbitration for businesses?

Greater flexibility and confidentiality.

What is one key disadvantage of litigation?

It is often lengthy, costly, and public.

What is one factor parties should consider when choosing between litigation and arbitration?

Complexity of the dispute.

Why might arbitration be preferred for complex disputes?

Arbitrators can be chosen for their specialised expertise in the relevant area.

How do parties control the process in litigation vs arbitration?

In litigation, courts control the process; in arbitration, parties have more control over procedures and schedules.

What are common costs in litigation?

Court fees, attorney fees, and discovery expenses.

Why might parties choose arbitration to preserve relationships?

Arbitration is less adversarial and more collaborative than litigation.

What is the key takeaway when choosing between litigation and arbitration?

Parties should consider factors like cost, time, privacy, complexity, and expertise to select the most suitable method.