Arbitration vs. Litigation Part 1
Disputes are an inevitable part of the world of construction. That’s why provisions need to be put in place when a contract is being produced to determine how these conflicts will be settled. Two primary methods for resolving conflicts are arbitration and litigation. Both have distinct advantages and flaws. A Fort Lauderdale construction lawyer can help you determine which one is best for your company and represent you in either process.
In this two-part series, we will explore the defining factors for both forms of conflict resolution. For more information about arbitration and litigation, you can skip to part two of this series.
While arbitration costs are creeping up, in general, arbitration is more cost effective than litigation. Litigation calls for a more detailed discovery process, which can drive up costs. Additionally, in court costs make litigation more expensive.
More Extensive Discovery
Sometimes, you get what you pay for. If your conflict requires more extensive research to discover the key facts, litigation will likely be a better option. Arbitration has a tendency to be limited in the amount discovery that it warrants.
When conflicting parties enter into arbitration, they set the terms for the process, including rules on evidence and interview methods. Both parties also select the the arbitrator or panel members for the arbitration. In litigation, you will not select the judge and, thus, not be able to determine their level of expertise in construction conflicts. That lack of knowledge may be a big factor in the outcome of your case.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.