The Pros and Cons of Arbitration vs. Litigation for Business Disputes in Los Angeles
Jun 28 2023 0

The Pros and Cons of Arbitration vs. Litigation for Business Disputes in Los Angeles

Fighting a legal battle is never the thing that a business owner in California wants to spend their time or money on. Figuring the most swift and cost-effective solution is usually the goal. Ending things in a peaceful manner before anything escalates is typically preferred. Though, the world is not perfect, and neither are business disputes. When a legal challenge comes about, a business owner trying to resolve things can do so either by arbitration or litigation. Each has its pros and cons.

When your business is facing a legal dispute, the Los Angeles business litigation attorney at the Leiva Law Firm can help you determine the right and most effective path forward. 

Comparing Arbitration and Litigation

The Pros and Cons of Arbitration vs. Litigation for Business Disputes in Los AngelesBusiness disputes are a reality of life that will inevitably happen at some point, and trying to figure out the best way to quell them for the best outcome is the ultimate goal. Maybe this can happen through arbitration, or it may be better to litigate. Consider the following pros and cons of each approach.


When a dispute is settled in arbitration, the court is not involved. A neutral third-party arbitrator will sit down with the disputing entities to come to an agreeable solution to their problems. 

PROS: Arbitration can resolve issues faster than litigation and, as a result, cost a lot less to get to a resolution. The final decision is also binding. The case is not dealt with in court, and there is no judge or jury to persuade. Also, settling things outside of court keeps matters private. Arbitration is a simpler way to settle disputes and is often favored by small businesses.

CONS: Unlike the appeals option that exists with litigation, arbitration agreements are usually considered to be final, and there is little recourse if one party believes the outcome is unfair.


If arbitration has not been written into a contract or if one side refuses to engage in arbitration, then the other way to work things out is litigation. Litigation involves going to court and having a case heard in front of a judge and jury.

PROS: A decision is reviewable with several levels of appeals that are available to the disputing parties. As a result, decisions are not always set in stone. Many times disputing parties can come to a settlement agreement before a trial comes about, meaning that the case will not be argued in court.

CONS: Litigation is expensive and can be a prolonged process. When going to court, everything that happens is public record, so confidentiality is impossible. The atmosphere and nature of litigation can be more stressful than arbitration.

Speak with an Attorney at the Leiva Law Firm Today

If you are in a situation where you are considering arbitration versus litigation, this is probably not the place you want to be. Nonetheless, when legal challenges arise, understanding your circumstances and your options can help you figure out the best way to manage things.

For assistance with a lawsuit in California, the Los Angeles business litigation lawyers at the Leiva Law Firm can meet with you during a free consultation. Call today at (818) 519-4465.

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