What are the differences between dispute resolution and litigation?

What are the differences between dispute resolution and litigation?

Dispute resolution refers to methods like mediation and arbitration to resolve conflicts outside of court, while litigation is the process of taking legal action in court.

Which option is usually faster and less expensive?

Dispute resolution is generally faster and less expensive than litigation, as it avoids the lengthy court process.

Are there situations where litigation is necessary?

Yes, litigation may be necessary in cases involving complex legal issues, significant damages, or when one party refuses to negotiate.

Can you give examples of dispute resolution methods?

Sure! Common methods include mediation, where a neutral third party helps facilitate a resolution, and arbitration, where a third party makes a binding decision.

What are the pros and cons of each approach?

Pros of dispute resolution include cost-effectiveness and speed, while cons may include less formal procedures. Litigation offers legal precedent and enforceability but can be costly and time-consuming.