Neither litigation nor arbitration is better in every case. Arbitration is private and often quicker, with an arbitrator the parties choose. Litigation is public, can be appealed, and does not require the other side to agree to it.
Arbitration
- Requires an agreement between the parties, often a clause in the contract
- Governed by the Arbitration Act 42 of 1965
- Private and confidential
- The parties pay the arbitrator and the venue
- The award is final, with very limited grounds to set it aside
Litigation
- Available without the other party's consent
- Judges are paid by the State, but the process can be slower
- Judgments can be appealed
- Proceedings and judgments are public
For commercial disputes with technical issues, or where confidentiality matters, arbitration often suits. Where a matter needs urgent court orders, or one side will not agree to arbitrate, litigation is the route. Check your contract first: it may already decide the question.
Need help with this? See Litigation & Dispute Resolution.
This answer is general information about South African law and does not create an attorney and client relationship. Please speak to the firm about your specific matter.