Arbitration
Arbitration is a form of Alternative Dispute Resolution (ADR) in which a dispute is referred, by mutual agreement of the parties, to one or more arbitrators who render a final and binding award upon the matter in dispute. By electing to resolve their differences through arbitration, the parties agree to substitute the jurisdiction of the courts with a private, consensual adjudicatory process, the outcome of which shall be enforceable in accordance with the applicable law governing arbitral awards.
The main differences between arbitration and litigation are that arbitration is a private, faster, and more flexible dispute resolution process with a private, neutral arbitrator chosen by the parties, while litigation is a public, slower, and more formal process that takes place in a court before a judge assigned by the court. Arbitration is often cheaper and offers limited appeal options, while litigation can be more expensive and includes extensive appeal rights.
| Feature | Arbitration | Litigation |
|---|---|---|
| Process | Private and informal with flexible rules set by the parties | Public and formal, following strict court procedures |
| Decision-Maker | An arbitrator chosen by the parties, often with specialized expertise | A judge assigned by the court |
| Confidentiality | Private, confidential proceedings | Public, open court proceedings |
| Speed | Typically faster, often concluding in months | Typically slower, can take years due to court schedules and backlog |
| Cost | Generally less expensive, though can be costly in complex cases | Generally more expensive due to court fees and longer proceedings |
| Control | Parties have more control over the process and arbitrator | Control is vested in the judiciary |
| Finality | Decisions are generally final and binding, with limited appeal options | Decisions can be appealed to higher courts |
| Suitable For | Business-to-business, contractual, and employment disputes needing confidentiality or expertise | Complex legal issues, criminal matters, and cases involving public interest where transparency is required |
Law Eunoia Service LLC provides for both domestic as well as international arbitration. The parties need to choose their arbitration venue and the arbitration shall be held with the aid of Law Eunoia Service LLC to choose a place.
Conciliation
Conciliation is a form of alternative, out-of-court dispute resolution wherein the parties seek to amicably settle their dispute with the assistance of an impartial third party, known as the Conciliator. It is a non-binding procedure, under which the Conciliator facilitates communication between the parties, identifies issues in dispute, explores possible terms of settlement, and assists the parties in reaching a mutually acceptable resolution. The parties retain full discretion to accept or reject the recommendations or proposals made by the Conciliator.
The main difference is that arbitration is a formal, binding process where a third party makes a binding decision (an "award"), while conciliation is a flexible, non-binding process where a third party facilitates a settlement that the parties themselves create. Arbitration is adversarial and involves a decision-maker acting as a judge, whereas conciliation is collaborative, and the third party acts as a facilitator to help parties reach their own agreement
| Feature | Arbitration | Conciliation |
|---|---|---|
| Third Party Role | Adjudicator: Acts as a judge who makes a legally binding decision called an "award". | Facilitator: Acts as a mediator who helps the parties negotiate a mutual settlement. |
| Binding Nature | Binding: The decision (award) is legally binding and enforceable like a court judgment. | Non-binding: The outcome is not binding unless both parties sign a settlement agreement, which then becomes a contract. |
| Process | Formal and structured: Follows specific legal rules and procedures. | Informal and flexible: Parties have more control over the process and can set their own terms. |
| Initiation | Requires a prior agreement between parties to resolve disputes. | Can be used for existing disputes without a prior agreement. |
| Outcome | An "award" made by the arbitrator. | A "settlement agreement" that the parties voluntarily sign. |
| Control | Parties have limited control; the arbitrator determines the outcome. | Parties have more control as they are actively negotiating and creating the solution. |
| Applicability | Typically used for commercial, construction, or labor disputes. | Often used for family, community, or interpersonal conflicts. |
Neutral Evaluation
Neutral Evaluation, also referred to as Early Neutral Evaluation (ENE), is a form of Alternative Dispute Resolution (ADR) in which a neutral third party, possessing expertise relevant to the subject matter of the dispute, receives and reviews the presentations of the respective parties concerning their positions and evidence. Following such presentations, the Neutral provides an independent and impartial assessment of the merits of the case, including the strengths and weaknesses of each party’s arguments, and may offer an opinion as to the likely outcome should the matter proceed to adjudication.
This process incorporates features of both advisory and facilitative dispute resolution mechanisms, with the objective of assisting the parties in evaluating their positions realistically and encouraging an informed, consensual settlement of the dispute.
Mediation
Mediation is a form of Alternative Dispute Resolution (ADR) designed to facilitate the amicable settlement of disputes without recourse to judicial proceedings. It is a voluntary and confidential process wherein a neutral and impartial third party, known as the Mediator, assists the parties in communicating, identifying issues in dispute, exploring options for settlement, and negotiating mutually acceptable terms of resolution.
The Mediator does not possess adjudicatory powers and does not impose a decision upon the parties; rather, the process is facilitative in nature, with the outcome depending entirely upon the consent and agreement of the parties.