LITIGATION
- Litigation is the process of taking a case through court.
- In litigation process, a case (suit or lawsuit) is brought before a court of law having the jurisdiction to hear the case, by the parties involved (the litigants) for resolution (the judgment).
ARBITRATION
- Arbitration is the process of bringing a business dispute before a disinterested third party for resolution.
- The third party, an arbitrator, hears the evidence brought by both sides and makes a decision.
- Arbitration is a form of alternative dispute resolution (ADR), used in place of in the litigation hope of settling a dispute without the cost and time of going to court.
- The arbitration process is private, between the two parties and informal, while litigation is a formal process conducted in a public courtroom.
| # | Arbitration | Litigation |
|---|---|---|
| Private/Public | Private – between the two parties | Public – in a courtroom |
| Type of Proceeding | Civil – private | Civil and criminal |
| Evidence allowed | Limited evidentiary process | Rules of evidence allowed |
| How arbitrator/judge selected | Parties select arbitrator | Court appoints judge – parties have limited input |
| Formality | Informal | Formal |
| Appeal available | Usually binding; no appeal possible | Appeal possible |
| Use of attorneys | At discretion of parties; limited | Extensive use of attorneys |
| Waiting time for case to be heard | As soon as arbitrator selected; short | Must wait for case to be scheduled; long |
| Costs | Fee for arbitrator, attorneys | Court costs, attorney fees; costly |