The Three Main Types of Dispute Resolution
When in the midst of a dispute, it can be difficult to know which legal path is most appropriate for each individual situation. If a dispute cannot be resolved without legal assistance, it’s important to reach out to neutral parties who can make the process smoother and minimize potential upset. Litigation, arbitration and mediation are the three standard types of dispute resolution, and experts — such as attorney-at-law Edgar Paltzer — advise that it is helpful to have an overview of each in order to select the most appropriate way forward.
Mediation and arbitration are the forms of dispute resolution that take place outside the courts, while litigation is conducted in court.
Mediation and Arbitration
Mediation is undertaken voluntarily by both parties by appointing an impartial third party, a mediator, to ease the process of reaching an agreement. Mediators have undergone specific training to enable them to facilitate a productive conversation without taking either side or enforcing their own decision. The process is ideal for enabling both sides to express their feelings and examine the basis for their opposing positions.
Arbitration also takes place outside of court, but the process is conducted with the assistance of an unbiased arbitrator who determines the outcome of the dispute. The arbitrator can be appointed by the parties themselves or by a governing body, and their resolution is usually binding. Every step of this process can be negotiated by the disputants.
Litigation
When disputes can no longer be resolved by mediation or arbitration, the final option is to take the conflict to court. Litigation refers to the resolution of disputes through the courts, which will issue a final judgment. This could be decided before a judge or a jury, and as the dispute is resolved in court the proceedings are detailed on public record.
The embedded PDF takes a closer look at the roles of judges and juries.
Preparation and discovery are carried out by lawyers, so there is less involvement in the process for the conflicting parties. It is not uncommon for a settlement to be reached before the case is heard in court, but if this does not occur, the judge or the jury will analyse the evidence and issue a ruling.
Litigation is regarded as a far more expensive method of settling disputes. It can also be a prolonged, drawn out process that businesses and individuals alike prefer to avoid.
