What is the difference between arbitration and litigation?

Arbitration and litigation are both methods of settling legal disputes. In arbitration, the parties to the dispute agree to have their dispute heard and decided by a third party known as an arbitrator. The arbitrator is usually an experienced attorney or retired judge. The parties will present their evidence and arguments to the arbitrator and the arbitrator will come to a decision. The decision is binding and cannot generally be appealed. Litigation, on the other hand, is when a dispute is submitted to a court of law. The court will hear evidence, arguments and testimony from both parties, and then make a decision. This decision can be appealed, and may go through multiple courts before the dispute is settled. The main difference between arbitration and litigation is the level of finality. Litigation can take much longer to resolve, as appeals can drag a dispute out for years. Arbitration is much faster, as the decision of the arbitrator is usually final and cannot be appealed. Also, arbitration is typically less expensive than litigation as the parties do not need to go through the court system. In California, securities arbitration law is used to settle disputes between brokers, investors, and securities firms. The arbitration process is similar to litigation in that the parties present their arguments and evidence to a panel of arbitrators. However, arbitration is usually much faster and less expensive than litigation and the decision is usually final and cannot be appealed.

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