Comparison of Advantages and Disadvantages between Arbitration and Litigation

Compared with litigation, arbitration is more free and faster, but it cannot be supervised by many parties like litigation, and each has its own advantages and disadvantages, so it should be chosen according to the situation.

Legal analysis

Arbitration is superior to litigation in efficiency, because the acceptance and trial procedures of arbitration are simpler and more dominant than litigation, and arbitration is final, and litigation is final by two trials. Parties who refuse to accept the first trial can appeal, which consumes a lot of time and energy. Moreover, judging from the current rising trend of litigation cases, it often takes a long time for a case to be accepted by the court, and the judges' judgments are also uneven. Arbitration is more professional. Arbitrators are often experts in various industries and are familiar with legal norms, so they have an advantage in judging facts that require rich professional knowledge, so they are more authoritative and persuasive in hearing cases and contribute to the final settlement of disputes. However, because judges are familiar with legal professional knowledge and know little about the professional knowledge involved in disputes, there may be deficiencies in fact finding. Arbitration is not all advantages, compared with litigation, the disadvantages are obvious. First of all, from the perspective of relief, although arbitration is convenient and fast, it does not have the supervisory role of retrial. Although the parties can apply for cancellation of arbitration under statutory circumstances, generally speaking, the parties have lost the opportunity to further claim their rights. The lawsuit was originally the final trial of the second instance. If a party refuses to accept the judgment of the first instance, he can also apply to a higher court for retrial, and the relief channels are relatively wider. In addition, the fairness and rationality of the arbitration results will be adversely affected by various external factors. This is mainly due to the lack of effective supervision mechanism for the management of arbitrators, and the lack of assessment and restraint mechanism will inevitably lead to unfair arbitration cases. In addition, arbitration cannot bind third parties. If the third party is to be held responsible for the arbitration case, it is necessary to conduct arbitration or litigation again, which will obviously reduce the efficiency of arbitration and be relatively difficult to implement in the future.

legal ground

Article 2 of People's Republic of China (PRC) Arbitration Law Contract disputes and other property rights disputes between citizens, legal persons and other organizations with equal subjects may be arbitrated. Article 2 of People's Republic of China (PRC) Civil Procedure Law The task of People's Republic of China (PRC) Civil Procedure Law is to ensure that the parties exercise their litigation rights, ensure that the people's courts find out the facts, distinguish right from wrong, correctly apply the law, hear civil cases in time, confirm the relationship between civil rights and obligations, sanction civil violations, protect the legitimate rights and interests of the parties, educate citizens to consciously abide by the law, maintain social and economic order and ensure the smooth progress of socialist construction.