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Court Litigation & ADR : Comparative Analysis

 Which mechanism should be adopted by you? The litigation process is not a speedy way to resolve disputes since it has the potential to drag on for months, even years. ADR, on the other hand, was formulated with the view of relieving the courts of their burden of numerous cases. But ADR has become very popular now, and every contract has an arbitration clause in it so that parties do not have to go through tenuous litigation processes. Let us see their comparison:

· Cost Factor:-

In most cases, the costs and expenses of arbitration are not as much of as litigation. The costs for the arbitration process are restricted to the fee of the arbitrator based on the quantum of the claim, expertise of the arbitrator, expenses, and lawyer fees. The lack of pre-hearing motions and multiple testimonies, as well as the conclusiveness of the decision, results in reducing attorneys' fees and costs.

Costs for litigation take account of lawyer fees and court costs, which can be very high for the reason that litigation is most of the condemned for the time and expense of pre-trial detection The cost of prolonged trials in the courtroom increases the cost of litigation. 

· Time Factor:-

The arbitration process is fairly speedy. Once an arbitrator is appointed, the case can be heard straight away. An arbitration hearing can often be observed in a matter of months and not years. In courtroom litigation, one has to hold on till the court has time to observe it; this can take many months, even years before the case is heard.

· Opportunity to present Evidence:-

The arbitration process has an inadequate evidence procedure, and the arbitrator controls what evidence is presented. This is one of the loopholes of the arbitration process whereby parties don't get the opportunity to present full disclosure of evidence and testimonies which consequently affects the Judgment. Litigation necessitates full disclosure of evidence to both parties subsequently there are subpoenas, interrogatories, and discovery processes for executing effective judgment.

· Privacy:-

Arbitration is private and confidential. The proceedings are not subject to public records. Arbitrators preserve the confidentiality of the hearings except for some law that necessitates the contrary. Litigation is a formal process conducted in a public courtroom. Lawsuits can damage reputations since Court filings and trial testimonies are subject to public records.

· Appointment of Arbitrator/Judge:-

The parties in the arbitration process can decide jointly on the arbitrator. In litigation, the judge is appointed and the parties have little or no say in the appointment. The parties may have some say in whether a case is heard by a judge or a jury considering the principles of natural justice.

· Ease of use of Appeal:-

The arbitration process is binding upon the parties. The parties commonly have no appeal option, unless an appeal has been incorporated in an arbitration clause. However, some arbitration judgments may be revised by a judge and may be removed if it is proved that the arbitrator was biased and subjective. Litigation allows multiple pleas at various stages starting from the District Court to the Apex Court. The courtroom is a far more satisfactory way of resolving disputes.

· On-going Relationship:-

Arbitration preserves ongoing business or personal relationships by resolving disputes amicably thereby allowing flexibility, control, and participation of the disputing parties. Courtroom litigation, which inclines to be more antagonistic in nature. This may not take into account whether litigants have continuing relationships or not.

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