Top 5 Reasons of Choosing Arbitration over Litigation

The decision of hiring Litigation and arbitration advisors to settle down disputes is not something that is taken into haste without considering all crucial factors. When you are facing a conflict with financial advisors, brokers, or any third party, it is necessary to have experienced legal advisors at your side. Prior to finalizing litigation and arbitration advisors, you need to find out the number and types of fraud cases or disputes they have handled successfully.

While our litigation and arbitration advisors have years of experience representing industry clients in various litigation and arbitration matters, handling disputes cases effectively and efficiently under today’s dynamic conditions requires more than just a lawyer.

Litigation and Arbitration are the two most popular methods of dispute resolution. While Litigation is a formal process, arbitration on the other hand is an informal process that involves settling down disputes outside the courtroom. Under the procedure of Arbitration, a third party termed as arbitrator is hired mutually by both parties. The arbitrator is under an obligation to give an unbiased and final decision after listening to the debates of both parties.

Normally individuals favor arbitration over litigations since it is less costly, quicker, secure, and also supplies more personal privacy to the parties. And among its various benefits, the most distinguishable advantage of mediation over lawsuits is its cost and also time efficacy. Here in this article, we will be discussing the top 5 reasons for choosing arbitration over Litigation in detail.

Advantages of Mediation/Arbitration:

1.  Flexible Procedure

Arbitration is considered to be extra adaptable than Litigation. Regulations related to the procedure of litigation are a lot more intricate as compared to mediation or arbitration, lawsuits need to adhere to the regulation of civil court, which involves following mouth-to-mouth resuscitation guideline publication whereas regulations related to arbitration are much easier and smaller in number.

In mediation there is no pre-established manner or code of procedure, it is agreed by the events, they can concur and also clear up to whatever they want.

2.  Less time-consuming as well as an Economical Process.

Arbitration is a speedier and more economical dispute resolution process. It aims at offering more expeditious resolution than the normal court process, Likewise, it is much less pricey than the court procedures. Being a private dispute resolution process, it keeps all the crucial information of both the parties private and away from the press or media. Thus, guarantees confidentiality and privacy of all the crucial matters.

3.  Ensures Better Quality Justice

Arbitration ensures much better quality and speedier justice than litigation as many courts in our country are overloaded with unsolved or pending dispute cases.  In international disputes too, arbitration provides much better high-quality decisions as contrasted to domestic courts.

4.  Offers a Greater level of Expertise

Arbitrators have a tendency to provide a greater level of proficiency as contrasted to a judge or jury appointed by the court, due to the fact that Mediators are selected from the number of the experts that have a specialized understanding of a particular profession or business thereby boosting confidence and trust of entrepreneurs in procedures and also the resulting award.

5. Ensures Unbiased and ultimate Decision

The reward of arbitration is best and permanent, and also there are very limited chances of additional and fake appeals, even if the arbitrator or third party makes a mistake of law or a mistake of fact.  Arbitration ensures an unbiased decision that proves to be useful for both parties. Unlike formal court proceedings, arbitration does not disclose the identity of the parties involved making it an ideal option for firms who want to maintain their reputation in the market.

To Sum up

In a nutshell, formal court Proceedings i.e., litigations are usually a lengthy procedure that might include many appeals, not only that, but you might potentially find yourself paying much more in legal costs than you would certainly such as. On the other hand, mediation or arbitration is a procedure that is far less time-consuming. 

In fact, where litigation can commonly take years to resolve, arbitration typically takes one year or less, which suggests that you will not be bound in court for an obscure size of time. Although, it is not wise to declare arbitration as the best option without looking at its drawbacks. 

Apart from litigation and arbitration services, our shipping and trade advisors can assist you in drafting contracts of carriage, marine insurance and you may contact us for other financial matters too.