The difference between arbitration and litigation

Image Source: subrogationrecoverylawblog.com

Arbitration or litigation?

These are two of the most common choices confronting opposing parties in a dispute. Some would agree on arbitration because of its efficiency, while some parties would insist on litigation because of its benefits.

The choice is not a simple one to make. Hence, it is important to understand the subtle but significant distinctions between arbitration and litigation.

In simpler terms, litigation is a win or lose battle that involves a relevant state and federal courts to resolve “disputes,” which require a party to seek an attorney and file a lawsuit in court. The process of litigation is conducted in a courtroom where the judge or jury makes the final decision.

Image Source: vetsteinlawgroup.com

In many cases, litigation is proven as an effective means to secure economic, social, and cultural rights for many companies and individuals as judges are bound to apply the rules of evidence and follow all relevant case law and Court rules.

Arbitration, on the other hand, involves a third party serving as an intermediary between the two disputants. In the pursuit of a dispute resolution, both parties have to agree to the matter adjudicated by the independent third party, who makes a legally binding judgment.

Some parties use arbitration because it is more private and is generally more time efficient than litigation. Moreover, others consider it less costly because it requires fewer expenses on counsel and meetings.

Image Source: arcmediation.com

An experienced professional in the field of law, Evan Granowitz is a Southern California-based civil litigator who works for Wolf Group LA. Know more about his experience and background by visiting this Linkedin profile.