Litigation and alternative dispute resolution methods (Mediation, Reconciliation, Negotiations, Preliminary evaluation of a neutral party, An independent expert opinion, Mini-court, Arbitration with the obligatory decision, Arbitration (arbitration) proceeding with the final offer, etc,) are becoming more widespread as a result of the global financial crisis wherein the people, companies, firms, entrepreneurs, and financial organizations want to cut expenses on unnecessary expenses and use the saved money for essential activities.
Litigation and alternative dispute resolution methods, both have their pros and cons. Have a critical review of these two dispute resolution methods and decide which one is best for you:
1. Involvement of Ombudsman Vs professional lawyers
If you use alternative dispute resolution method, an ombudsman tries to arrange face to face meetings between you and your rival parties, discuss all points of differences as per the existing law and reach a mutually beneficial agreement within a few hours and sittings. It helps you to save a significant sum of money as you just have to pay the mediation fee to the ombudsman.
On the other hand, when you take your dispute to the court, it involves several lawyers from both sides. Arguments presented by lawyers and their counter arguments take time to be settled. Your case may take weeks, months or even several years to get resolved. You have to spend lots of money on lawyer's fees, traveling expenses, food, telephone, etc. This can make a big hole in your budget and affect your daily life or business activities up to a great extent.
2. Binding Vs Non-Binding
Verdicts pronounced by courts are binding. All the involved parties are supposed to respect court orders. If anyone has a problem with the court verdict, he/she can challenge it in higher courts with evidence and get the sentence changed in their favor.
The decision taken by lawyers with the use of alternative dispute methods are non-binding. Involved parties can obey or disobey the rulings as per their desire.
3. Instant Verdict Vs Prolonged Cases
Alternative dispute resolution methods have the potential to solve even the most complex legal matters within a few hours if all the involved parties are determined to reach an instant solution to their matters. If you initiate the court proceedings, it takes several weeks, month and years to get the matter resolved. If the case gets prolonged, it may affect your normal life activities badly.
4. Privacy Vs Revealing Sensitive Details
Lawyers that use alternative dispute resolution methods to solve your problems are required the maintain the privacy of your sensitive details and use only those details which are necessary for the solution of the problem. But, in litigations, law enforcement agencies and lawyers seek your sensitive details to complete the investigation and find the truth. In this course, your sensitive trade secrets become public, making it easier for your rival companies to capture market share by launching the same products/services.
5. Continuation of Relationship Vs Cold War
Problems solved through alternative dispute resolution methods put an end to bitterness in the relationship of two rival parties as their interests are protected by the lawyers. In litigation, court pronounces its judgments based on the evidence & arguments produced by lawyers. If the rival party suffers a huge loss in litigation, it may increase bitterness in their relationship, ending any chance of future reconciliation.
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