Arbitration v. Litigation: Pros and Cons of Dispute Resolution

More than two centuries before Hamilton became Broadway’s most successful musical, Alexander Hamilton and his nemesis, Aaron Burr (sir), chose to resolve their disputes by dueling at dawn in Weehawken, New Jersey. This fateful duel, as we all know, mortally wounded Hamilton, one of our nation’s founders and greatest patriots. Fortunately, dueling long ago ceased to be used as a method to resolve disputes, but business partners today continue to have conflicts that require efficient resolution. This post reviews the two options that are available to resolve civil claims — arbitration and litigation — and considers the pros and cons from the perspective of both private company majority owners and minority investors. Neither fi

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