There are many alternatives to resolving legal disputes than just the court system. Arbitration is a method of resolving disputes between a worker and their employer. A neutral third party performs discovery on both parties, and then selects the side they believe to be in the right. Said side is then rewarded arbitrary rewards in the form of either financial or compensatory damages.Â
But what are the key differences between litigation vs arbitration? And how are they often better alternatives to the courts?
Litigation Is Public While Arbitration Is Private
Most of the time, court filings from litigation are available to the public. This means that members of the public, such as reporters, can access the content of the filings and provide them to the public through written articles. This can result in negative publicity for both parties before a decision has been made. The court of public opinion can often be more damaging than any decision made by legal authorities.
In contrast, arbitration is almost always private. There is no public arbitration docket, so there are no public records of the event to access. It’s not required that any motions be filed publicly, and there is typically no media personnel looking for an inside scoop. Even if the matter of conflict is rather sensitive, you can rest easy knowing it can be resolved privately through arbitration.Â
Litigation Can Be A Slower Process Than Arbitration
Litigation is notorious for moving at a slow speed. With the oversaturation of court applications and lack of resources to efficiently settle every case, it can take 18 to 36 months for a lawsuit to reach the bench. This prolonged experience can cost the parties involved substantially more than they had initially expected to pay.Â
Arbitration is typically a much quicker process than litigation. In many arbitration cases, the parties may only need to wait a couple of months before the main hearing. While they still follow some civil procedures, arbitration tends to be much less formal, so there is less potential for competitiveness to slow the process down.
While Litigation Decisions Can Be Appealed, Arbitration Decisions Cannot
Litigation allows for the losing party to exercise their right to appeal a judicial decision. The parties will spend more time and money on litigation by participating in the appeal process. Appeals also introduce uncertainty, as appellate courts could find partly for the appellant and partly for the appellee, so no party comes out of the appeal a clear winner. However, since appellate courts allow for a verdict to potentially be overturned, each party has a reasonable chance at a new outcome with each appeal. Â
Arbitration, on the other hand, cannot be appealed. The only exceptions are when either party believes there to be bias or fraud involved, or if both parties agree that the decision should be reversed and attempted again.
Litigation vs Arbitration, DaMore Law Has Got You Covered
Different types of legal situations require all different types of legal knowledge. Legal issues are a serious matter, and you need to be equipped with the right person for the job. At DaMore Law, our gifted attorneys cover a wide range of legal areas such as family, estate, and business law. We do all we can to make sure our clients receive the justice they deserve. Visit our website for more information.