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Litigation is an ancient process that involves determining issues through a court, with a judge or jury. The type of court is decided by the type of dispute, based on jurisdiction. In most civil cases, jurisdiction is based on where the lawsuit originated.<br><br>Arbitration, on the other hand, involved two parties in a dispute who agree to work with a disinterested third party in an attempt to resolve the dispute. In arbitration, there may be one or more arbitrators who hear both sides of the issue and who make a decision. Jurisdiction is not an issue, although the arbitration is chosen based on expertise.<br><br>Here are some differences between litigation and arbitration:<br><br>Public/Private, Formality<br>The arbitration process is private, between the two parties and informal, while litigation is a formal process conducted in a public courtroom.<br><br>Speed of Process<br>The arbitration process is fairly quick. Once an arbitrator is selected, the case can be heard immediately. In civil litigation, on the other hand, a case must wait until the court has time to hear it; this can mean many months, even years before the case is heard.<br><br>Selection of Arbitrator/Judge<br><br>In litigation, the judge is appointed, and the parties have little or no say in the selection. The parties may have some say in whether a case is heard by a judge or a jury.<br><br>In arbitration, the two parties usually decide together on an arbitrator, unless the decision is specified in the arbitration clause of a contract.<br><br>Cost of the Process<br>The costs for the arbitration process are limited to the fee of the arbitrator (depending on the size of the claim, expertise of the arbitrator, and expenses), and attorney fees. Costs for litigation include attorney fees, pre-trial costs for depositions and interrogatories, records searches, and court costs, which can be very high.<br><br>Use of Attorneys<br><br>Attorneys may represent the parties in arbitration, but their role is limited; In civil litigation, attorneys spend much time gathering evidence, making motions, and presenting their cases.
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