Litigate Or Arbitrate An ERP Failure?

Is it better to arbitrate or litigate digital transformation disputes? Like most things, it depends.

• Arbitration is usually less expensive and quicker than litigation.

• You can select an arbitrator with ERP software and technology experience, and the dispute is confidential.

• In some scenarios, you may have a panel of arbitrators.

Choosing the right arbitrator(s) is everything. Pick incorrectly, and the results can be disastrous.

• Some arbitrators are more concerned about resolution than the merits of the case.
• This can result in questionable rulings that are virtually impossible to reverse.

With litigation, disputes are governed by rules of civil procedure.

• Rulings can be appealed.

• A perceived advantage of arbitration is that it is less expensive than litigation.
• However, that is not always true. The upfront fees and the cost of the arbitrator (or arbitrators) can be costly.
• I’ve seen arbitrations that rivaled the cost of federal court litigation.

Arbitration is not always preferable to litigation and is not always less expensive.