What is the difference between arbitration and litigation?

The main difference between arbitration and litigation is that arbitration is a private dispute resolution process and litigation is a public dispute resolution process. Arbitration is a form of alternative dispute resolution (ADR) where two parties present their dispute to a third party neutral—or arbitrator—who makes a decision on both sides of the dispute. The decision is binding, meaning that both parties have to comply with the terms established by the arbitrator. Litigation, on the other hand, is a public dispute resolution process where two parties present their dispute to a court of law and ultimately a judge or jury makes a decision on the dispute. Arbitration is often less formal and quicker than litigation. In North Carolina, the standard arbitration process usually begins with a written agreement between the two parties that outlines the arbitration process. This involves meeting with an arbitrator to present each side’s argument and the arbitrator makes a final decision. Arbitration also helps to maintain confidentiality since proceedings are usually held in private and the records cannot be made available to the public. Litigation is usually more formal than arbitration and takes longer since both parties must adhere to the procedures established by the court. Litigation also takes place in a public forum, where records can be made available to the public. The outcome of litigation is also binding. In conclusion, arbitration and litigation are different dispute resolution processes. Arbitration is a private and more informal process compared to litigation, which is public and more formal. Decisions made in arbitration are also usually quicker and the records are not available to the public.

What is the difference between arbitration and litigation?

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