Litigation and dispute resolution are proven and accepted methods to resolve legal conflicts with significant differences in the way they operate and expected outcomes, as follows:
Litigation
- Litigation is a formal, structured legal process that involves presenting a case in court.
- Proceedings and outcomes are available as part of the public record.
- A judge or jury makes a legally binding decision based on the evidence/arguments presented.
- Litigation is often more confrontational and adversarial, as each party attempts to win over the judge or jury.
- Proceedings can be long and drawn out, making it an expensive process as court and attorney fees accumulate.
Dispute Resolution
Dispute resolution is less formal than litigation and is typically tackled in stages (referred to as Alternative Dispute Resolution), including:
Mediation
- A neutral, third-party mediator works with the disputing parties to reach a mutually acceptable, non-binding agreement without escalating.
- Parties are encouraged to approach mediation with an open mind and willingness to compromise. Agreements can often be reached through discussion and negotiation.
- Proceedings are private and confidential and not available as part of the public record.
If mediation fails, the next stage in the dispute resolution process is:
Arbitration
- A neutral third party acts as a judge and hears arguments from both sides before making a binding decision.
- Proceedings are private, and the outcome is typically confidential.
- Although arbitration is relatively flexible and much less formal than court appearances, any decision the arbitrator reaches is final and cannot be appealed.
Key Differences
- Mediation allows parties significantly more flexibility and control over the outcome. Litigation is rigidly determined by established legal procedures.
- Mediation is typically less time-consuming and costly than litigation.
- Litigation is public, whereas mediation is private
It is almost always in the best interests of both parties to reach an agreement through dispute resolution, avoiding the costly, stressful experience of full court proceedings.