What is the difference between a class action arbitration and a class action lawsuit?

A class action lawsuit is a type of legal action where a group of people are represented as a single unit due to similar grievances against a defendant. This gives the group more strength and bargaining power, since the group shares responsibility for the legal costs, rather than each member having to pay their own. A class action arbitration, on the other hand, is a dispute resolution process that avoids the traditional court system. A neutral, third-party arbitrator is appointed to hear both sides of the argument, and then make a decision. The decision of the arbitrator is legally binding, and the parties must abide by the outcome. The main difference between a class action lawsuit and a class action arbitration is that in arbitration, the parties do not have access to the court system. This means that there is no opportunity for formal discovery, motions, or jury trials. The arbitration process is usually quicker and less expensive than a court case, however it is also more limited in the amount of remedies available. In New York, the laws governing class action arbitration and class action lawsuits are essentially the same. The biggest difference between the two is the venue in which the dispute is resolved. If the parties cannot resolve the dispute in arbitration, they must take their case to court.

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What is the difference between a class action arbitration and a class action lawsuit?

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