Litigation is the process of determining issues through a court trial. But arbitration is a process that is very different from the process of litigation. Most of you may have heard of litigations but not much about arbitrations. No doubt, most of you may have seen an arbitration clause in most of the contracts you have signed or witnessed. In fact, arbitration is the process where two parties to a dispute agree to work with an uninterested third party to resolve a dispute between the two individuals. This article provides information on the difference between litigation and arbitration.
The process of arbitration may employ one or more arbitrators to hear both sides of the case and make a decision accordingly. Even though the litigation process is conducted in an open courtroom in public, arbitration is a private process conducted between the two parties involved in the dispute and the arbitrator. It is informal in nature, though if it includes an intellectual property law firm it can get pretty dull. Arbitration is quick compared to the process of litigation. Once the arbitrator is selected, the process begins. Litigation can take months or even years to complete the case. In fact, the court will give the dates depending on their availability.
The cost of arbitration is inexpensive compared to the cost of litigation. The cost is limited to the fee of the arbitrator depending on the size of the claim, experience of the arbitrator, and other documentation charges. On the other hand, the cost of litigation could be really high which includes the court fees, attorney charges, and other fees. Even though an attorney may represent the parties involved in arbitration, their role is limited compared to an attorney’s role in the process of litigation.
The aforementioned read and following video offer information on the difference between the process of litigation and arbitration.