Legal dispute encompasses any conflict between two or more parties that requires resolution through a legal process. This can be through formal court-based litigation or alternative methods like mediation and arbitration. Understanding the differences between these types of disputes can help individuals and businesses navigate the legal system more effectively.
Litigation includes all court-based actions to resolve disputes, such as filing pleadings (claims and legal arguments) and conducting discovery. It may also involve arguing cases before a judge or jury and can take many forms, from family law to estate planning to real estate issues to class action lawsuits.
Disputes often end in settlement, and mediation is one of the most common ways to facilitate this. During this process, a neutral mediator facilitates the back-and-forth communication between the parties to find solutions without taking decision-making power. Mediation can be conducted in a conference room or private setting and is often offered by attorneys or professional organizations for a fee.
Arbitration is another method to resolve a dispute that involves a neutral person or body making a binding decision on the case. Typically, an arbitrator is chosen because of their expertise in the industry or area of law involved, and they can be lawyers or non-lawyers. Some agreements include mandatory arbitration clauses or offer court-sponsored arbitration programs.
Even when cases do not settle, many go through a trial, which can be lengthy due to court schedules and discovery phases. Sometimes a party will win the trial and be awarded attorney fees, but this depends on the circumstances and the state or federal statute involved.