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Arbitration and Litigation: Learn their Differences

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If you haven’t had much experience when it comes to disputes, you might likely be confused by the differences between arbitration and litigation which are both methods in resolving issues. In most cases, lawyers fail to explain the differences between the methods of dispute resolution and the significance of choosing one over the other, unless you specifically ask them to do so.

In this blog, we will be talking about the differences of both dispute resolution methods.

The legal experts here at S & S lawyers understand the importance of informing our clients, a quick overview and a short guide on the differences between arbitration and litigation. However, this blog is not intended to replace seeking appropriate legal advice as there might be exceptions that exist depending on a particular situation and the uniqueness of the legal agreement.

What is Arbitration?

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties involved, to one or more arbitrators who make a binding decision on the dispute. And when parties choose arbitration, the parties opt for a private dispute resolution procedure instead of going to court.

Take note that Arbitration is consensual and can only take place when both parties agree to it. It is neutral and is a confidential procedure with the WIPO rules being applied to protect the confidentiality of the existence of the arbitration. Now, parties must also ensure that they include an arbitration clause in their contracts or agree to arbitration after a dispute arises, specifying the rules, procedures, and arbitral institution governing the process.

What is litigation?

Litigation is considered as the standard dispute resolution method. It is a formal process during which legal disputes are resolved. Individuals use this method to use the civil court system to address a wide variety of issues ranging from personal injury claims to divorces to disputes surrounding a breach contract.

It remains a common and traditional approach to resolving disputes in the UAE with a judicial system consisting of federal and local courts. The UAE courts are organized into three levels: Courts of First Instance, Courts of Appeal, and Courts of Cassation.

Selecting the Right Dispute Resolution

Choosing the most appropriate dispute resolution mechanism depends on several factors such as the parties involved, costs, time, desired outcome and the nature of the dispute.

One distinct difference between arbitration and litigation is that the parties involved in a dispute do not have a significant influence over litigation compared to arbitration, as it is possible for them to choose their arbitrator(s). Usually arbitration is being handled by a tribunal of one or three arbitrators and the parties to an agreement may decide on this therein. And to assure neutrality, when parties choose only one arbitrator to solve the issues, the arbitrator will be chosen and appointed by the arbitration centers but parties may object on the identity of the appointed arbitrator.

Both litigation and arbitration costs are proportional to the value of the claim but arbitration costs are most of the time higher than the litigation because of its exclusivity. So when choosing between litigation and arbitration, it is best to consider the value of the agreement before proceeding with any kind of dispute resolution.

S & S Lawyers is a leading law firm consisting of experienced lawyers and advocates in Sharjah that provides high quality legal services to groups and individuals to help them with legal matters, including arbitration, civil, criminal law and crimes, real estate, personal status, and as well free legal consultation. محامي الشارقة,المكاتب القانونية,شركة محاماة,المحامون,مكتب الشارقة القانوني,شركة محاماة في دولة الإمارات العربية المتحدة,مكتب قانوني في دولة الإمارات العربية المتحدة,الاستشارة القانونية,استشارة قانونية مجانية,المحامي الجنائي,مستشارين قانونيين,خدمات قانونية,خدمات قانونية,محامون عقاريون,محامي احوال شخصية,محامو العمل,محامون مدنيون,المحامين الجنائيين,محامو الملكية الفكرية,

Judgment and Award Enforcements

The most important factor to consider when choosing between litigation and arbitration is the enforcement of the judgment and awards as it would make no sense to choose either one if the winning party was unable to benefit from the award or judgment.

The enforcement duration of an award can take a little over a year longer than that of a judgment. This is because the party ruled against in an award has one additional legal recourse to object and/or delay the enforcement of the award than they would regarding a judgment.

Other factors to consider before choosing between Arbitration and Litigation

With regard to privacy, obviously it is clearly advantageous to choose arbitration over litigation as proceedings are usually conducted privately and the documents pertaining to the arbitration remain confidential. Litigation proceedings on the other hand is now part of the public record, which would not be fitting if the parties hold a significant importance to keeping a potential dispute private.

And when it comes to language being used during litigation and arbitration, it is important to note that both methods can only be conducted using Arabic where you are within the United Ara Emirates. Any documents submitted to the court must be in Arabic, and should be translated in Arabic by an approved Arabic translation office.

Conclusion

Choosing between arbitration and litigation is not as easy as picking which restaurant to eat at; there are factors that parties involved need to consider in order to come up with the best legal outcome. While this article tackles all these factors, it is still important to talk to seasoned legal professionals like the team from S & S lawyers to get the most appropriate dispute resolution method for any of your situation, which would be paving the way for a successful conflict resolution while protecting your rights and interests.

Contact info@2s-lawyers.com for free legal consultation, or call us via (02) 5305559 and (+971) 0509936981.

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