Alternative Dispute Resolution vs Litigation in Financial Disputes

Comparison table: mediation, arbitration, and court trial

Privacy: mediation is typically confidential; public trial is not.

Control: mediation outcomes require agreement; arbitration/trial yields an imposed decision (subject to appeals rules).

Timing: mediation can be fast if parties engage seriously; litigation timing is driven by dockets and discovery.

Cost: all three can be expensive; litigation discovery often dominates spend in complex financial cases.

Evidence: arbitration may have streamlined rules; trial follows formal evidence rules.

Remedies: courts may offer broader provisional remedies depending on jurisdiction.

Financial implications of ADR design

ADR clauses may affect damages measurement, expert appointment mechanisms, and confidentiality of business information. Financial experts may be involved in mediation presentations even when they will not testify.

Counsel should align damages exhibits to the forum: arbitrators may prefer compact expert binders; juries may need different explanatory scaffolding.