Business litigation is also known as commercial litigation and it is actually a very broad term which is used in order to identify the business disputes that go beyond the boundaries of informal phase. People often talk about litigation, mediation and arbitration in a way like they are interchangeable. But it is important to know that these terms cannot be used in place of each other. The distinction between them is subtle yet important and it is important to discuss these differences.
It refers to discovery, law & motion, pre-trial, settlement as well as trial phase of the business dispute when the complaint is filed with the court. Any document which is filed as the litigation becomes automatically, the part of the public record. These records are accessible by the general public like the press, your competitors as well as businesses and individuals. The result of the case remains binding on both the parties.
This is the matter where both the parties agree in advance to settle the matter out of the court and an arbiter acts as the private judge. The price of arbitration is borne by both the sides. Arbitration may or may not be binding. Documents in this process are not the public records and this process is nor too fast, neither too inexpensive.
In this process, the parties agree to attempt for mediation or settlement before returning to the lawsuit. Mediator is not the judge in this case and also does not always posses special training for handling such cases. Mediator can be paid for by the parties involved in the dispute. In the process of mediation, the purpose is facilitation of the settlement by hearing what both sides have to say. This is a private approach of solving the disputes.