If you have a dispute with somebody, going to court to resolve it is a long, expensive and public process. But there are alternatives to litigation, the most common of which we’ll look at here.
Arbitration
Arbitration often happens after a breach of a contract clause. These clauses state that in the case of a dispute, the matter must be referred to an arbitrator, who will examine the evidence before making a legally binding decision. The advantage of arbitration is that, unlike a court, the details remain confidential, and it is also much more cost-effective. You can still use litigation funding to pay for it and if you are looking for litigation funding London, firms such as //www.novo-modo.co.uk/litigation-funding-london can advise.
An arbitrator’s decision is usually final, meaning there can’t be a court appeal.
Mediation
Mediation can be used to resolve many types of civil and family disputes. These include neighbour disputes, financial disputes, childcare arrangements after a divorce and compensation after an injury.
Unlike arbitration, mediation is completely voluntary and involves a mediator being appointed to bring the parties together and support them in finding a mutually agreed solution.
A mediator doesn’t act as a judge or make the final decision, but is a neutral party who encourages dialogue. In litigation, judges often encourage mediation in an effort to avoid a trial.
Any party is free to walk away from mediation at any time and what is said during mediation is ‘without prejudice’, meaning it cannot be used in court later if the process breaks down.
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