Is it better to arbitrate or litigate digital transformation disputes? Like most things, it depends.
- Arbitration is usually less expensive and quicker than litigation.
- You can select an arbitrator with ERP software and technology experience, and the dispute is confidential.
- In some scenarios, you may have a panel of arbitrators.
Choosing the right arbitrator(s) is everything. Pick incorrectly, and the results can be disastrous.
- Some arbitrators are more concerned about resolution than the merits of the case.
- This can result in questionable rulings that are virtually impossible to reverse.
With litigation, disputes are governed by rules of civil procedure.
- Rulings can be appealed.
- A perceived advantage of arbitration is that it is less expensive than litigation.
- However, that is not always true. The upfront fees and the cost of the arbitrator (or arbitrators) can be costly.
- I’ve seen arbitrations that rivaled the cost of federal court litigation.
Arbitration is not always preferable to litigation and is not always less expensive.