Comparisons

Advantages and disadvantages of different dispute resolution methods

	Advantages	Disadvantages
Do Nothing	Effortless Avoid stress of confronting the dispute Matter remains private	The dispute remains unresolved One party will still be disadvantaged at the hand of the other party
Negotiate	Both parties get to play a role in resolving the dispute The resolution is agreeable to both parties Available remedies are limitless It doesn’t cost anything to negotiate with the other party Easy process Matter remains private	Emotions can often be intense during disputes so it may be difficult for the parties to think clearly Sometimes the parties don’t have enough knowledge of the subject matter of the dispute to ensure a fair deal is struck and that strict legal rights and obligations are enforced.
Mediation	Mediator facilitates negotiations and takes steps to ensure that the communication between the parties remains calm Both parties get to play a role in resolving the dispute The resolution is agreeable to both parties Available remedies are limitless Relatively easy and informal process Matter remains private Mediation is normally much less expensive than litigation Mediation is relatively quick and efficient	There are costs associated with hiring a mediator The product of mediation is the creation of a solution which is acceptable to the parties. This does not necessarily mean that the parties’ strict legal rights and obligations have been maintained. Mediated solutions are not legally binding unless the parties agree to the terms of the mediated solution by signing a contract.
Arbitration	The Arbitrator imposes a solution upon the parties which is useful if the parties are too adversarial to craft their own solution Arbitrators often have specialized knowledge of the subject matter of the dispute Process is less formal than litigation Process is more expedient than litigation Process is typically less expensive than litigation	The arbitrated solution may not be agreeable to both parties (win-lose) The range of remedies available for the Arbitrator to impose is limited by the Arbitrator’s authority. Process is more formal than mediation Process often takes longer than mediation Process is often more expensive than mediation Matter does not remain private
Litigation	Creates useful precedent Strict legal rights and obligations are enforced	Court proceedings are generally public so privacy and confidentiality is limited Expensive Can be a lengthy process Formal process Stressful process Limited remedies available Win-Lose solutions; adversarial process