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New York Construction Law Blog

The difference between litigation, mediation and arbitration

Posted by Karl Silverberg | Aug 06, 2020 | 0 Comments

Construction can be a lucrative business, as long as things go well. If you end up in a dispute with a contractor or client, the dream of financial success can seem a long way off.

When things do not go to plan, there are three ways of solving the issue between you:

  • Litigation: You take your chances with a lawsuit. You could walk away with a big win, or you could suffer significant losses. The only certainty is that you and the other party will invest considerable time and money trying to prove the other person is wrong. A lawsuit can leave a bad taste in your mouth and you will probably never work together again.
  • Mediation: You and the other company sit together with an outside party and try to reach an agreement. It can succeed if you both enter intending to reach an accord. If done well, you could emerge with good relations intact and save your business relationship.
  • Arbitration: You and the other side agree to disagree, and let someone else decide for you. You each submit your evidence to the panel of arbitrators and must abide by their decision. It can be useful in disputes where neither of you knows what the answer is or whose fault something was, as you can use an arbitrator who is an expert in that field. Some business contracts stipulate any disputes are to be resolved by arbitration.

With mediation for your business dispute, you can quit if you cannot resolve the situation to your liking. If you opt for arbitration, you must comply with the panel's ruling.

About the Author

Karl Silverberg

Karl Silverberg Contact Me: (631) 778-6077 Email me Practice Areas: Construction Law Biography Prior to law school, Mr. Silverberg worked as a professional engineer, and has eight years of experience working as a structural engineer on public sector transportation projects. Mr. Silver...


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