Who gets involved in dispute?

business
entity government
Individual

government
Individual business
entity
 What is ‘litigation’?

• controversy before a court

• lawsuit has been filed
• Lawyers involved in the settlement of
disputes,
• heard and decided by a judge or jury
in a court
 What are the advantages of
litigation?  
• It may be the only remaining option if
previous settlement efforts have failed.
• Appeals are possible.
• Decision binding on both the parties
 What are the disadvantages of
litigation?  
• Time and Money.
• Win/Lose. judge or jury declares a winner and a loser
and awards a judgment to the winner.
• Loss of Control. control of the result is given to a
third person or persons with no stake in the outcome.
• Inconclusive. "Winning" the case in court does not
guarantee an end to the dispute.
• Publicity. proceedings and records are open to the
public, there is no guarantee of privacy in litigation.
• Lose/Lose
– lose relationships with others
 Arbitration

– What is it?
• Case heard by arbitrator who has authority to
decide the case
– sometimes a panel of 3 hears case
• Parties may voluntarily agree to engage in
arbitration or court may order
 Arbitration
• Third Party Neutral Makes a Decision
• Adversary Process, Like a Debate or
Court
• Parties and Counsel Prepare Like a Trial
• Could Be Binding
• Neutral Listens To Evidence and
Argument
 Arbitration
• Arbitration
– Advantages
• cost reduction
• quicker resolution of case
• arbitrator more experienced than juror
• Privacy can be maintained
• Arbitrations not bound by precedent
 Arbitration
Disadvantages
• no appeal
• Litigation if dispute not resolved through arbitration
 ICA Arbitration Clause
• "Any Dispute or differences whatsoever arising
between the parties out of or relating to the
construction, meaning and operation or effect of
this contract or the breach thereof shall be
settled by arbitration in accordance with the
Rules of Arbitration of the Indian Council of
Arbitration and the Award made in pursuance
thereof shall be binding on the parties."
 Conciliation
• Settlement of trade dispute through third
party
• Through local chamber of commerce
• Indian council of Arbitration also act as
conciliator
• In case conciliation efforts fail then dispute
settlement through Arbitration or Litigation