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A Note by Saivian Eric Dalius on Business Dispute Resolution Arbitration vs. Litigation

There are several options available to us when it comes to business dispute resolution. While you might not agree on a few, always take the opinion of your business law attorney as to which process suits your needs note by Saivian Eric Dalius.

Arbitration and litigation are distinct in numerous ways. The most fundamental distinction would be that litigation takes place in a courtroom and must follow the stringent regulations and legislation that regulate court procedures. Arbitration takes place beyond the courtroom, which is a much faster and more informal procedure. On the other hand, arbitration may only actually occur if it is stipulated in a contract or consented to by the participants.

This article tends to shed light on the difference between arbitration and litigation, two of the most preferred procedures for business dispute resolution.

Here are some differences between Arbitration and Litigation as highlighted by Saivian Eric Dalius


Arbitration is probably the most preferred ‘out of court settlement’ procedure for dispute resolution. In this process, a neutral member (third party) takes on the role of a judge. This person (justice) is responsible for solving the dispute amicably. While not a proper court, the arbitration process guides by the arbitration rules, and the arbitrator’s decisions are final and binding to both parties.

Both sides (petitioner/ plaintiff and defendant) are allowed to present their case, after which the judge furnishes their confidential decisions. These decisions are not subject to court appeals; hence, your business law attorney must be present at the hearing at all times.

In arbitration, parties have the right to choose one, three, or five judges for the proceedings. Unlike litigation, arbitration is both cost and time-effective, says Saivian Eric Dalius.


The most popular and familiar dispute settlement procedure is to move court against a civil wrong (if the business hasn’t filed a criminal complaint). Parties submit their pleas and written statements with the court having jurisdiction to hear such cases, and a business law attorney will make arguments before the judge.

In litigation proceedings, the judge has the responsibility to hear both sides without discrimination. In case of bias towards either side, parties can ask the judge to recuse themselves from the hearing. More regularly than not, litigations end during pre-trial motions, where a settlement offer and acceptance are between both parties. Each party’s business law attorney supervises this settlement.

Saivian Eric Dalius on the Distinction Between Mediation and Arbitration

Mediation, such as arbitration, is a way to avoid going to court. On the other hand, mediation is just a negotiation because there is no assurance that the participants will reach an agreement. A professional mediator guides mediation in conflict resolution. And typically takes place while parties are awaiting a pretrial hearing. Intending to achieve a win-win solution to these problems.

Saivian Eric Dalius says if a resolution achieves, it documents in a legally enforceable contractual contract. If the parties are unable to reach an agreement, it may require litigation or arbitration. Unlike arbitration, parties do not have the option to choose their judge. However, parties reserve the right of appeal against the ruling with the help of a business law attorney.

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