Types of Dispute Resolutions

Dispute Resolution

So you tried to find these terms through the internet? Let us explain these dispute resolutions. There are a plethora of options open to us when it comes to dispute resolution. Disputing parties are often puzzled as to which technique to utilize in their scenario. Assume that the parties and their counsel have explored all options for reaching an agreement. They’re ready for outside assistance in resolving their conflict, but they’re not sure where to look. Here’s a review of the three basic types of dispute resolution to consider:


Mediation is a kind of alternative conflict resolution in which the parties negotiate to address their differences. The parties will be assisted by an impartial third party, the mediator, in identifying the fundamental points in disagreement and considering choices and alternatives for resolving the problem. Mediation may be voluntary, court-ordered, or part of a contract’s dispute resolution provision. The mediator serves as a neutral third party who encourages communication between the disputants. They will explain how the mediation will work, ask questions of the parties to discover the true problems in disagreement, and assist in the development of resolution choices. In most mediations, the parties will be physically separated, i.e., they will sit in separate rooms, and the mediator will talk with one party at a time, shifting between them during the mediation. The mediator, as an impartial third party, may provide creative alternatives that the parties may not have considered before the mediation. They will not, however, provide advice, take sides, or make choices. Mediators have often retired judges or other senior attorneys in business disputes, depending on the magnitude of the case. A mediation normally takes place over the course of one day. The parties may, however, delay a mediation and reschedule it if they agree that it will result in a settlement.


Arbitration is a method of resolving disputes in which an impartial arbitrator renders a binding judgment on the matters in dispute based on the evidence submitted by the parties. Arbitration is quite similar to litigation in practice, except that it takes place outside of a courtroom. Arbitration is frequently triggered by a contract’s dispute settlement provision. It may also happen when the parties agree to go to arbitration on their own (for example, to keep the matter private). The arbiter is appointed by the parties in agreement. If the parties cannot agree on a certain arbitrator, they will usually choose an independent person or entity to appoint the arbitrator.


By “litigation,” we imply going to court to resolve a disagreement between or among parties. It is a legal action brought by competing parties with the purpose of enforcing or protecting a legal right. The dispute is taken to court, where the judge (who has been designated by the court to function as the litigator) renders a decision on the issue after evaluating all of the arguments, evidence, and facts offered by the parties’ attorneys. If the parties disagree with the court’s rulings, they may appeal to a higher court for justice, as long as certain circumstances are met. The court has a specific and formal system for resolving disputes between the parties, which must be properly followed. However, owing to the rigidity and high expense of the litigation process, parties may resort to arbitration.