Skip to Content
Call Today: 313-546-9685

How does arbitration differ from litigation?


Litigation is a standard process to settle Michigan business disputes. This process involves taking the dispute to court in front of a judge or jury. Breach of contract, partnership disputes and disagreements between businesses are three common disputes that may settle in court. Arbitration is another way to resolve a disagreement.

According to the Balance, arbitration attempts to resolve the dispute with a neutral party and the two disputing parties. In some cases, an arbitration may involve more than one arbitrator. The arbitrator meets with the two parties in a private setting to hear both sides to the story. This is a far less formal process than litigation. The process may feel laid back in comparison to litigation. This is because it does not have the same rigid structure that a courtroom litigation has.

In litigation, you may have to wait months before a judge or jury will hear your case. Once you select an arbitrator, you can start the process immediately. Litigation is also the more expensive process. Court fees can stack up. With arbitration, you only pay the arbitrator fees and attorney fees if you decide on representation.

In arbitration, the arbitrator controls the evidence that he or she allows. There are no rules, as opposed to litigation, where you have a discovery process, subpoenas and full disclosure of all evidence. Then, when you complete the process, the deal is binding. There are no appeals in arbitration. In litigation, you can seek multiple appeals. Most business contracts allow you to choose between arbitration and litigation. Some may require arbitration.

This is strictly for informational purposes and you should not use it for legal advice.

  • Facebook
  • Twitter
  • LinkedIn
Share To: