Topic: BusinessStrategy

Last updated: April 17, 2019

Numerous entrepreneurs and manufacture businesses organizations choose or select that any disagreement occurs will be settled by arbitration. While some prefer litigation over arbitration since arbitration lacks features of procedural and legitimate structures unlike in court litigation (“The Advantages and Disadvantages of”, 2015). Firstly, what is an international arbitration? International arbitration is non-judicial procedure as in an independent third party is chosen by the two parties to resolve the argument and is it slightly alike to private court litigation, yet rather than holding a private court it takes place in a private place chosen by the two parties and a judge called as an arbitrator (“The Advantages and Disadvantages of”,2015). In addition, international arbitration mixtures the factors of civil and common law strategy (International Arbitration Information, 2018). The process of arbitration appears when the parties agree to resolve their disagreement by an “arbitrator” a third independent person who is selected manually by the two parties to solve their dispute (Murray, 2018). International arbitration is frequently faster and less costly than a court procedure known as “litigation” and its type of process is civil (private) (Murray, 2018). People often use international arbitration as it helps to grant parties from various legitimate, phonetic and social distributions to determine their debate in a last and conclusive way.

Arbitrations procedures are being used widely and more people are preferring arbitration over litigation nowadays to solve the dispute of a contract because of its simple and uncomplex procedure and because that arbitration’s procedure is less costed (cheaper) and less time consumed to resolve the disagreement unlike in litigation where the resolution of a dispute takes months and even years (Murray, 2018). Another difference between arbitration and litigation is that in arbitration the parties pay for the arbitration while in litigation the state pays for the judge (Konokanga, 2018). Secondly, what is a litigation? Litigation, on the other hand, is a process in which the dispute is being resolved in a court and by a judge particularly to fight for a legal right and is a judicial procedure in which the disagreement formed by the two individuals is intended to be solved in a court and by a judge and a lawsuit and litigation’s type of process is civil and criminal (Murray, 2018).

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Most of the time, litigation takes place when a party affords an attorney to perform their concerns or to collect their evidences. In litigation, the process is resolved by obtaining the laws of the court. However, the way toward conveying a law action to court starts with the offended party documenting a grievance, and ordinarily, an indictment is likewise recorded, giving the respondent notice of the claim and setting a due date for a reaction. Moreover, litigation’s procedure generally takes various steps to settle the disagreement between the parties unlike in arbitration (Murray, 2018). Although, the procedure of arbitration and litigation are similar meaning that both aim to resolve a dispute, still they are unalike in various ways.

Litigation is a lawful procedure that works along the court system and a judge selects the final decision: arbitration is a private procedure and the one who selects the final decision called the arbitrator (Murray, 2018). There are various advantages and disadvantages of both litigation and international arbitration that I’ll be stating and arguing about on this report.International arbitration has more advantages than litigation for many reasons.

From my point of view, I choose arbitration over litigation since arbitration got more advantages than litigation. Firstly, arbitration has more advantages than litigation as the process of arbitration is private, its speed is faster and less time consumed wasted than in litigation, the cost of its procedure is less compared to litigation, the parties have the ability to select a decision maker or a decision selector which is an arbitrator and the parties also have the ability to choose the place and the time for settlement meaning that arbitrations procedure are held in a private room (unfilled room), they frequently occur in an informal and a confidential setting (Surbhi,2017). the parties have the access to decide when breaks are planned and also have the access to select the hours of meeting, they are often not disturbed unlike in court procedures. Firstly, and the most important benefit of arbitration’s procedure is that it’s kept and stored private, confident and formative meaning that the process in arbitration is kept unofficial and only among the two parties and the arbitrator itself, unlike in litigation which its procedure is kept in public. Secondly, the arbitration’s speed process is faster and less time consumed and wasted meaning that the parties have the hearing immediately after the arbitrator has selected the decision which in arbitration doesn’t take very long time, while in litigation the process sometimes takes several weeks, months and years to hear the decision because in litigation the parties have to be on hold as far as the court has come up with a decision which usually consumes more time and this results in many times being wasted, that is the second important reason why I have chosen arbitration over litigation. Thirdly, the cost or the amount of payment in arbitration is less compared to litigation since in arbitration all you need to pay is for the arbitrator and the attorney which its use in arbitration is limited unlike in litigation, where the parties must pay for the court fees and for the attorneys too which their use in litigation cases is quite much since attorneys collect proofs and evidences and therefore they might be highly costed (Murray,2018). Another reason why I have chosen arbitration over litigation is that because in arbitration the parties have the ability to choose and select a decision maker that will resolve their dispute which is called an “arbitrator”, so the arbitration will be a person that both parties have agreed on and will be confident about him, unlike in litigation the parties have no access to choose the judge (Kanokanga, 2018). Moreover, in litigation the two parties have the ability and the access to choose the right time and the place for the settlement, whilst in litigation the judge is nominated by the court and therefore, the parties have no access to choose time and place for settlement only the judge chooses unlike in arbitration, where the parties have the access to choose the decision maker (Murray, 2018).

However, the advantages I liked in litigation that arbitration doesn’t have or have a limited access to it are that in litigation the parties have the access to appeal for many times if they weren’t satisfied or were against the final decision but for specific circumstances, whereas in arbitration, the parties have no access to appeal if they couldn’t agree with the final decision (Surbhi, 2017). In addition to that litigations are a formal law procedure, where procedural mistakes can demonstrate lethal to either party’s case whilst in arbitration, this procedure is very limited and often less (Konokanga, 2018). In contrast, arbitration is chosen over litigation by many parties who seek for a dispute resolution or settlement for the reasons that arbitration’s procedures are kept private and confidential, faster and less time consumed judgment, less expensive and not highly costed, malleable in procedure and the fact that parties have the access and the ability to choose the decision maker (arbitrator) and the time for the settlement (“The Advantages and Disadvantages of”, 2015). Finally, this shows that arbitrations is a helpful and an uncomplex procedure for settling a disagreement.

However, litigation too has some advantages that arbitration has no access or has limited access to it such as availability of appeals.


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