What Is The Difference Between Adjudication, Mediation, Arbitration and Litigation?

Litigation v Alternative Dispute Resolution

Litigation is the civil action initiated in courts and the outcome is decided by the Judge. It is typically complicated and involves high value matters and are brought before a Judge who draws on the depths of available legal knowledge and precedents, with the assistance of opposing lawyers, to make a decision within the rigid legal procedural structure. It is therefore easy to see why litigation is costly and of considerable length.

ADR was introduced to enable parties in a dispute to enlist a third party (mediator/adjudicator/arbitrator) to decide in a faster period and free (or freer) from the legal confines that is associated with litigation, to lower costs.

Here's an overview comparison of ADR

MEDIATION

• very informal
• high confidentiality
• lower cost than arbitration
• shortest period - may conclude within 1 -2 days

ADJUDICATION

• less formal than arbitration, rules of evidence do not apply
• Adjudicator controls content and outcome of proceeding (if any)
• lower cost than arbitration
• shorter than arbitration - in CIPAA 2012, Adjudicator has to decide within 45 days
• decision is interim as it may be appealed or stayed or overturned by arbitral award or Court
• monetary remedies only

ARBITRATION

• rules of evidence do not apply but procedural rules applicable
• remedies must be legal capable of being performed
• may take years to conclude
• costs may be higher than litigation because of thoroughness and expediency