Litigation vs Arbitration: What’s the Difference?

The difference at a glance

Litigation is the formal, public process of resolving disputes through the court system. Arbitration is a private, usually faster alternative to litigation where a neutral party decides.

What does Litigation mean?

noun · /ˌlɪt.ɪˈɡeɪ.ʃən/

The process of taking a dispute to court — from filing a claim through discovery, trial, verdict, and possible appeal. Litigation is the formal mechanism by which private disputes become public proceedings.

Litigation in a sentence

The litigation would last four years, cost both sides more than the original dispute was worth, and end in settlement.

She had avoided litigation for twenty years before something happened that left her no other choice.

What does Arbitration mean?

noun · /ˌɑːr.bɪˈtreɪ.ʃən/

A form of alternative dispute resolution in which the parties to a conflict agree to submit their dispute to one or more neutral arbitrators, whose decision is typically binding. Faster, cheaper, and more private than litigation.

Arbitration in a sentence

The employment contract required arbitration — she signed without reading it and only understood its implications when she needed to file a complaint.

International commercial disputes routinely go to arbitration rather than national courts — neutral ground, enforceable awards.

Frequently asked questions