What is the difference between arbitration and civil litigation?

Arbitration and civil litigation are two distinct forms of dispute resolution. While arbitration is a less formal process involving binding negotiations between disputing parties, civil litigation is a more formal process with a judge or jury making a decision on the outcome of the dispute. In arbitration, a neutral third-party is appointed to hear both sides of the dispute and make a decision. This can be done in person or online and is usually a faster process compared to civil litigation. The parties can also choose the arbitrator, whereas in civil litigation the judge is assigned to the case. The arbitrator’s decision is binding, meaning that both parties must abide by the decision or face legal consequences. Civil litigation is a more formal process, which involves the filing of a lawsuit in court. The parties present their arguments to a judge or jury, who will determine the outcome of the dispute. The decision handed down is final and both parties must abide by it. In addition, civil litigation is often more expensive and can take longer to resolve. In Texas, either arbitration or civil litigation can be used to resolve a dispute. The choice of dispute resolution will depend on the type of dispute, the parties involved, the amount of money at stake and the urgency of the case. Either way, the process should be conducted in a respectful and professional manner.

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