When Should A Business Choose Arbitration Over Commercial Litigation? Key Considerations For Employers

Introduction

Business disputes can arise from contracts, vendor relationships, technology agreements, construction projects, joint ventures, employment arrangements and other commercial relationships. When a dispute cannot be resolved through negotiation, businesses may need to consider formal dispute-resolution mechanisms.

Two important routes are commercial litigation and arbitration. While both can provide legally binding outcomes, they operate differently and involve different procedural considerations.

For employers and businesses, the question is not simply whether arbitration is better than litigation. The more useful question is: when should a business choose arbitration over commercial litigation?