When disputes arise, would you prefer to settle your differences in court or behind closed doors?
Litigation is the process of resolving disputes through court. In litigation, the dispute is presented to a judge or jury who will make a binding decision.
Arbitration uses a neutral third party to make a binding decision outside of court. It is a cheaper, faster and more informal alternative to litigation.
Pros of Litigation:
• Appeal: You have the option to appeal the decision to a higher court if you are unhappy with the outcome.
• Public Record: Court decisions are public records, which help establish legal precedents for future cases.
• Court: Courts have the power to enforce decisions and can offer a wider range of solutions.
Cons of Litigation:
• Cost: Between attorney fees, legal fees and court expenses, the costs can quickly pile up.
• Time: Litigation can drag on for months to potentially years.
• Stress: Going to court can be a very draining process.
• Privacy: Litigation proceedings are public, which can deter parties wanting to keep the dispute confidential.
Pros of Arbitration:
• Time: Arbitration is faster and more efficient than litigation.
• Cost: Arbitration is cheaper than litigation as court-related expenses are not required.
• Privacy: Proceedings are private, unlike public court proceedings.
Cons of Arbitration:
• Limited Appeal: There is little room for appeals.
• Bias: The outcome depends on the chosen arbitrator, who may be influenced by biases.
• Precedents: Arbitration does not set legal precedents the way litigation does.
Factors to Consider:
Cost: If cost is an issue arbitration may be a more affordable option.
Time: If you require a fast resolution then arbitration may hold more appeal as a faster option.
Privacy: If the dispute involves sensitive information, arbitration may be more valuable as it is a more private solution.
Appeal: If you would like to have the option to appeal a decision, litigation offers more options for an appeal.
Severity: If the dispute involves large sums of money or important legal rights, litigation should be the primary option to get a binding decision that can be legally enforced.
Lawhaven Solicitors is one of the top law firms in Nigeria and can help with dispute resolutions. If you are dealing with a dispute and need legal advice, contact us.
Your first consultation is free!