How is the arbitration process different from the litigation process?

The arbitration and litigation processes are two distinct methods of resolving legal disputes. Both processes are governed by distinct sets of laws and, as a result, differ greatly from one another. In California, arbitration is a voluntary process in which two parties agree to use an alternative dispute resolution (ADR) method to settle their legal dispute. This can involve the assistance of a neutral third party, such as an arbitrator, who will hear each side’s argument and help the parties reach a resolution. The arbitration process is usually less formal and quicker than litigation, but the decision of the arbitrator is binding. On the other hand, litigation is a more formal legal process that is overseen and governed by the court system. It involves a lawsuit being filed in court by one party against another. A judge or jury then hears the case, and the parties are required to follow the rules and procedures laid out by the court system. Unlike arbitration, the decision of the judge or jury is not binding on the parties and can be appealed. Additionally, litigation is generally more costly and can take longer than arbitration to resolve. In conclusion, arbitration and litigation are two distinct processes that offer different approaches to resolving legal disputes. Arbitration is usually less formal and takes less time, while litigation is usually more expensive and requires the parties to follow court procedures.

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