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Arbitration is an Alternative Dispute Resolution (ADR) method that involves a third-party hearing and deciding a conflict between two parties. In contrast, litigation is a legal process of resolving disputes in a court where a judge determines the case. Arbitration is often used when parties wish to resolve their dispute more quickly or privately than through a court process. Therefore, minor disputes are likely to be settled through arbitration, unlike significant and complicated disagreements that require the litigation process to settle conflicts. While arbitration is a private conflict resolution process involving a third party to offer a binding decision, litigation is a method of dispute resolution through a legal court process.
There are remarkable similarities and differences between arbitration and litigation methods of decision-making. First, both processes involve presenting evidence to a third party to make a neutral decision. Moreover, arbitration and litigation have binding outcomes, and both have a set hearing date for the decision. However, in arbitration, parties under conflict agree on an arbitrator, which is different from litigation, where the court determines the judge or jury to render a decision in public. Compared to litigation, the arbitration process generally takes less time and is less formal, and the outcome is binding on the parties (Gough, 2021). Additionally, the rules of evidence are less strict in arbitration than in litigation, considering the arbitrator has more discretion to make decisions based on fairness rather than strict rules of law. Ultimately, litigation and arbitration methods involve third parties with varying processes, time, and regulations.
Ultimately, arbitration and litigation are forms of dispute resolution with unique features applicable in numerous ways. Arbitration is a private, less formal process with flexible rules of evidence, unlike litigation, which is a public, derailed court process based on strict rules. The circumstances of the case, the parties preferences, and the type of dispute largely influence the choice between arbitration and litigation.
Reference
Gough, M. (2021). A tale of two forums: Employment discrimination outcomes in arbitration and litigation. ILR Review, 74(4), 875-897. Web.
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