Arbitration

Arbritation vs litigation

The differences between arbitration and litigation involve the processes themselves and the result of decisions on the disputes.

Arbritration

Arbitration is a form of alternative dispute resolution (ADR), used in place of litigation in the hope of settling a dispute without the cost and time of going to court. Litigation is a court-based process that involves a decision that is binding on both parties and a process of appealing the decision.

Arbitration v mediation

Arbitration is often confused with mediation, which is an informal process of bringing in a third party who goes between the disputing parties to help them settle a dispute. The mediation process is not binding on the parties, and the mediator does not hear evidence. The mediator meets with the parties for discussion. The mediator tries to bring the parties together by discussion and caucusing (a separate discussion). Litigation, arbitration, and mediation are all involved in settling business disputes.

arbitration

Typically, arbitration begins when two parties agree to settle their dispute through arbitration. The decision may also have been made for them by the addition of an arbitration clause to a contract that both parties have signed. A typical arbitration clause in a business contract might look like this

AAA-American Arbitration Association

is a not-for-profit organization in the field of alternative dispute resolution, providing services to individuals and organizations who wish to resolve conflicts out of court, and one of several arbitration organizations that administers arbitration proceedings.

Arbitration

is the process of bringing a business dispute before a disinterested third party for resolution.The third party, an arbitrator, hears the evidence brought by both sides and makes a decision. Sometimes that decision is binding on the parties. To arbitrate a matter is to bring it before an arbitrator. An arbitrator is a spectator, witness, or hearer.