Difference Between Arbitration and Litigation

Difference Between Arbitration and Litigation

Nobody likes to go through the humiliating ordeal of presenting their case in front of the whole legal crowd. You have to go through unmasking the many things your offender has done. In the process, you risk being mortified in an undignified way.

At times like these, why don’t you take advantage of something called arbitration? If you are unfamiliar with this concept, here we explain everything you need to know about it. Find out what is the difference between arbitration and litigation.

When you are subject to legal things, there are two points that stand out quite strongly in the crowd – litigation and its companion, arbitration. However, a lot of humans commonly confuse these terms.

Why not continue reading this article to understand the difference between litigation and arbitration?

Definition of Arbitration

We all know what courtroom scenes involve and we do our best to avoid such scenes in our lives. But there comes a time in everyone’s life when we have to choose. This particular choice could save you a lot of humiliation.

In case you have never heard of this, here is the simplest way to learn the definition of arbitration. When an individual is immersed in a fight, he/she can always ask a neutral third party to find and conclude the final result for you. This man/woman who gives the final result is arbiter. If you want more people to help you, then you can go ahead and add one more person. As many personalities are not involved here, the entire process is fair and fast.

No option such as appeal is considered here. However, you may do so if the clause allows it. When you want to prove your point, you don’t always have to prove it. This kind of intervention is quite cost-effective because you only have to pay the arbiter fees. In this process, an attorney doesn’t have much say. All the outcomes and findings of the case are in the hands of the sole adjudicator.

Before you make your problems public, stop for a minute and think about whether arbitration is something you are looking for.

Definition of Litigation

When you judge someone in front of the whole audience with a lot of humiliation and difficult cross-examination, you can safely say this is the definition of litigation.

In these types of proceedings, the attorney is the main person who speaks for you and against your opposite party. And the power to conclude everything rests solely in the judge’s hands. If you ever want to have a new trial at any stage of the lawsuit, you can do so several times.

Unlike its counterpart, this particular operation requires evidence to prove everything in front of the judge. You simply cannot expect the judge, the audience or the jury to take your words seriously.

Legal tribunal agendas are difficult and lengthy and may take months and even years to complete. Because the overall drill is long and arduous, the money involved is enormous.

Therefore, before you decide, see if the litigation is really what you want.

Arbitration vs Litigation Comparison Table

Basis of ComparisonArbitrationLitigation
PlacePrivate and between two partiesIn courtroom
EvidenceMostly not neededNeeded
AppealNot possiblePossible on multiple stages
Cost Comparatively lowHigh
Attorney needNot neededNeeded
Decision makerArbiterJudge

Conclusion of the Main Difference Between Arbitration vs Litigation

When you are dealing with a difficult legal situation, you need to understand everything to avoid a difficult process that could cost you an arm and a leg. In addition, you don’t want to be stuck with a lawsuit for many long years.

In this article about arbitration vs litigation, we can deduce that both are useful in one way or another. The difference may appear quite simple, but understanding it is as important as breathing.

In case you are forced to sue someone but you don’t want to do it in public, then you can choose arbitration. But if you want to do it in public, you can choose litigation. The judge is the guy in charge here. You cannot take anything to him without data that proves your point.

In a private setting, an arbiter is the ultimate boss. You don’t really have to provide any hard evidence to support of everything you say.

Last but not the least, if you ever want to re-examine everything in court, you can do so as many times as you like. However, you cannot appeal to an arbiter.