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The main difference between arbitration and litigation

Time:2014-03-13 Hit:991

The main difference between arbitration and litigation

     In essence, both power sources are different. Judges exercise of national jurisdiction out of public rights; arbitrator authorized exercising power derived from the law, it's authorized by parties of a contract.

The main differences are as follows:

  1. Initiating conditions. There shall be an arbitration agreement, indicating that voluntarily submit disputes to arbitration; otherwise, arbitration was inadmissible. Civil action does not require bilateral consultations in accordance with the legal requirements for the court to accept. If you choose arbitration, it means that you have waived a right of action as arbitration and litigation can coexist.
  2. Institutions are different. Arbitration Committee was organized by the people's government of the relevant departments (legal) and chambers of Commerce, its governed by the China Arbitration Association, its members are mostly lawyers and Government personnel part-time while the court is a national legal institution.
  3. Jurisdiction is different. When drafting the arbitration clause or an arbitration agreement between the parties, they may select a national scale, and good reputation of the arbitration institution, parties, even have the right to select an arbitrator. People's courts are divided into four levels; the jurisdiction of the court is expressly provided according to the law over the civil disputes arise between the parties. The parties are not free to choose the court.  
  4. The procedure is different. Unlike the judgment, no party may apply for arbitration in respect of the same facts again, or to the people's court of appeal. The civil procedure of litigation can go through two to three stages, such as first instance, the second instance and retry. And arbitration conducted in camera, which helps keep the business secrets of the parties. Civil procedure without any special cases must be heard in public.
  5. Enforcement of award. If one party refused to carry out the award by the losing party, arbitration organs have no enforcement powers. It shall be submitted to people's court for the enforcement of the award. But if a People's Court made a final judgment, the people's court has the power to enforce the judgment if the party refused to carry out its duties, the people's court may on its discretion or on a party's application, take enforcement measures to enforce the judgment.

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