Arbitration, mediation or court? Choosing the right route for a dispute

When a dispute arises, the first question is often where it will be decided. Your contract may already answer it: many commercial agreements contain an arbitration clause or name a particular court.

Courts

Courts are public, their judgments can be appealed, and they are often the only route for urgent measures such as attachments or travel bans.

Arbitration

Arbitration is private and lets the parties choose experts as arbitrators — valuable in construction, engineering and maritime disputes. Awards are final, with limited grounds to challenge them, and can be enforced in many countries.

Mediation and conciliation

Mediation brings the parties together with a neutral person to reach their own settlement. It is quick, inexpensive and preserves business and family relationships.

• Check your contract for an arbitration or jurisdiction clause.
• Consider how urgent the matter is and whether you need interim measures.
• Think about confidentiality and the relationship with the other party.
• Ask where the other party’s assets are, because that is where you will enforce.