How does arbitration differ from traditional court litigation?

Arbitration is a type of dispute resolution method where parties involved agree to have their disputes resolved by one or more arbitrators, whose decision is legally binding whereas litigation is the process of resolving a dispute by bringing it in a court of law. These two ways of resolving disputes differ in several ways which are:<br /><br />i) Procedure<br />Arbitration offers more flexible in terms of rules, procedure and choice of arbitrators compared to litigation which is subject to stringent regulations and procedure established by the regulations and the law.<br /><br />ii) Privacy/ confidentiality<br />Arbitration hearing is often conducted privately allowing parties to confidentiality and protect sensitive information from the public while litigation takes place in a specific determined courtroom as part of the public process and to serve as a basis for future legal precedents and future cases.<br /><br />iii) Cost<br />Arbitration is more economical compared to litigation as it eliminates expenses such as the advocates fees and the expert witnesses' costs. Litigation fees can escalate rapidly particularly in complex cases.<br /><br />iv) Speed/ Time<br />Arbitration can be faster compared to litigation which is a lengthy process and cab be time-consuming due to court schedules, backlogs of cases and complexity of presenting evidence and arguments.<br /><br />v) Limited grounds for challenge.<br />The grounds for contesting or appealing an award in arbitration are more often limited than in litigation where parties have an opportunity to appeal an unfavourable verdict or decision.<br /><br />vi) Flexibility<br />Arbitration offers more flexibility and unlimited control, allowing the hearing to proceed according to the availability of the parties and the arbitrator while litigation parties have less control over the litigation process since it is governed by the court rules and procedures.