Individuals and entities often choose between arbitration and litigation when legal disputes happen. Both processes aim to resolve conflicts but differ in various ways.
What is Litigation?
Litigation is the traditional court process where a dispute is brought before a judge or jury. Both sides present their evidence and arguments, and the court makes a binding decision. It’s the legal process most people consider when they imagine resolving a dispute. These are some points you should remember:
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- A Public Process: Hearings at court are open to the public, including records, unless these are sealed. This provides transparency, but it also risks having sensitive information exposed.
- Formal Procedures: Litigation follows strict rules and procedures. Attorneys gather information, present evidence, file motions, and follow precise legal protocols.
- Lengthy and Expensive: Litigation can take years to resolve. A lot of factors play into this, including backlogs and lengthy procedures. As it continues to extend the process, you ramp up your expenses for attorneys, court fees, and witnesses.
- Filing an Appeal: You can file an appeal against a court ruling that you are unsatisfied with. While this prolongs the case, an appeal allows you to reconsider the decision.
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What is Arbitration?
Arbitration is a private method to resolve a dispute where parties agree to submit their complaints to arbitrators. The decision or award of arbitrators is binding and enforceable, just like a court ruling. Some points that you need to remember include:
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- Nonpublic: Compared to litigation, arbitration is a private process. Companies and individuals who wish to keep disputes confidential use arbitration to resolve a legal case.
- Less Formal: Arbitration is less formal to an extent, and the parties involved have more control over the process. Unlike litigation, you do not have to adhere to strict rules of evidence.
- Faster Resolution: Parties can agree on their timelines and schedules. This allows arbitration to avoid the long delays that happen in court cases.
- Limited Right to Appeal: Awards are final with limited grounds for appeal. This can put you at a disadvantage if you wish to challenge or revert a decision.
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Both arbitration and litigation have pros and cons. Your decision will depend on your goals, needs, and the nature of your dispute. Contact our law firm in Texas, Craig, Terrill, Hamm, Grossman & Erwin, LLP, today for expert counsel and support.
