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Arbitration vs.

Litigation
Arbitration
• Arbitration can be described as the private method of adjudication of
disputes, wherein the parties seeking a settlement, mutually select
one or more independent and unbiased persons as arbitrator.
• The arbitrator studies the situation and listens to the arguments and
evidence of the parties, to make recommendations on the case, which
is considered as final and binding upon the parties concerned.
Mediation
• A mediator is a jointly instructed neutral party. Their role is to assist
with communication between the two parties having the dispute to
achieve a settlement or resolution. The mediator will discuss the
issues openly and try to help the parties reach an agreement, but will
generally not offer their own opinions or assessment.
Conciliation
• Conciliation is a common form of ADR used for employment disputes.
Furthermore, conciliation is a compulsory process before an
employee wishes to bring a claim to the Employment Tribunal. The
conciliator will discuss the issues and try to help the parties reach an
agreement, often providing their own opinion after assessing the
situation and the different arguments.
Litigation
• The term ‘litigation’, we mean going to court for settling the dispute
between or among parties. It is a legal proceeding initiated between
the opposing parties, with the aim of enforcing or defending the legal
right.
Litigation Arbitration
Litigation is a legal process in which the court decides Arbitration resolves disputes by appointing a neutral
the outcome for the dispute. third party to study the case, receive the evidence,
and then make a binding decision.

Litigation is a public procedure with established Rules In arbitration, resolving issues between parties are
of Procedure and Rules of Evidence, which govern confidential and private, making it a smart choice for
how a trial is conducted and resolved businesses that want to keep their private matters
away from the public and press.

Litigation typically takes longer due to the formal Arbitration typically provides a speedier resolution
Rules of Procedure and Rules of Evidence and the than litigation since the parties and the arbitrator
backlog of the courts (which has been exacerbated by agree on a schedule once the arbitrator is appointed.
COVID-19).

Parties may be compelled to participate in court You cannot compel the other party to participate in
proceedings. arbitration unless you have a contract that requires it.
Otherwise, both parties must consent to participate in
the proceedings.
Litigation Arbitration
Either party may appeal the court’s decision in a civil Unless otherwise agreed, the arbitrator’s decision is
trial based on an alleged material error in the trial. final and binding and cannot be appealed, except in
limited circumstances.
the trial judge is assigned by the court without input the parties choose the arbitrator, often based on
from the parties involved. expertise in a related field of law or industry.
Litigation can be more expensive than arbitration due Arbitration can be less costly, primarily due to the
to the lengthy pre-trial discovery process and the compressed schedule. However, both the arbitration
appeals process. association and the arbitrator charge discretionary
fees, which are borne by both parties in the dispute.
POD Arbitration Litigation
Nature Civil Civil or Criminal
Proceeding Private Public
Place As decided by parties Court
Cost Low Comparatively high
Appeal Not Possible Possible
Decided by Arbitrator Judge
• Arbitration is preferred by the parties over litigation due to many
reasons such as greater confidentiality, quick judgement, choice of
solutions, higher chances of settlement, low cost, flexibility in process
etc.
• Although, litigation has a number of advantages, i.e. numerous
appeals can be made, easy enforcement of the final outcome, etc.

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