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Consumers explore alternatives to litigation

Not all consumers want to use traditional litigation to resolve their legal disputes. A variety of alternatives allows consumers to choose the option that best suits their legal resolution needs.

The number of court cases continues to rise, which means that the courts are inundated with a large number of cases that need to be resolved. Many people are unwilling to start litigation due to the amount of time and energy it takes to resolve a case.

The costs of taking a dispute through court litigation have also increased. Consumers are looking to save money due to the unstable economy. Looking for an alternative to litigation can also mean spending less to receive a trial.

Mediation is an alternative that consumers can consider when trying to resolve a dispute. Mediation is a less expensive and less formal way to resolve a dispute. A mediator helps each party involved in a dispute to clarify their needs and reach a mutually satisfactory solution.

Arbitration is a second alternative to litigation. Like mediation, arbitration is less expensive, less formal, and more timely. Arbitration involves the judicial system, but in a different way than litigation. The case is brought before a neutral third party arbitrator, often a former judge, who hears the case and renders a final decision in favor of one of the parties.

Arbitration offers parties pursuing a dispute the benefits of a decisive legal result without the cost and time involved in traditional litigation. Organizations like the National Arbitration Forum can help consumers seek arbitration.

Recent research has shown that consumers are recognizing the benefit of alternatives to litigation, particularly arbitration. A new white paper titled “Arbitration: A Good Deal for Consumers” by Professor Peter B. Rutledge of the Catholic University of America concludes that consumers actually prefer arbitration to litigation.

Findings from a National Poll of Likely Voters further support this conclusion. The study of registered voters likely to vote in the 2008 election found that 82 percent chose arbitration to resolve a serious dispute with a business, while only 15 percent chose litigation. Arbitration is quickly becoming the preferred way for consumers and businesses to resolve legal disputes.

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