Arbitration vs Litigation for Disput Resolution

07/10/2010

It is important to recognise that arbitration is a very different process to the resolution of disputes when compared with litigation.

There are many perceived advantages of arbitration over litigation. Some of them include the following:

  • Neutrality of venue – the parties to a dispute choose a “neutral” place for the resolution of their dispute with the consequence that there is no “home advantage”;
  • Neutrality of arbitrator(s) – this avoids the potential risk in some jurisdictions of judicial corruption;
    Expertise of arbitrator(s) – the parties get to choose an experienced person who is used to dealing with disputes in the particular area of law in issue;
  • Party autonomy – the parties to a dispute can tailor the arbitral proceedings to meet the specific requirements of the dispute, rather than having to be conducted in accordance with fixed rules of civil procedure;
  • Confidentiality – the privacy of arbitral proceedings is a powerful attraction to some companies, particularly those with trade secrets or competitive practices to protect;
  • Arbitration has a good record on the enforcement of award.
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