Section 1

Civil Litigation & ADR

How disputes get resolved — inside and outside the courtroom.

Three main paths to resolve a dispute

Mediation

A neutral third person (the mediator) helps both sides talk and try to reach a voluntary agreement. The mediator does not decide who wins.

  • Pros: Cheaper, faster, private, preserves relationships.
  • Cons: Non-binding unless both sides settle; may not work if one party won't cooperate.

Arbitration

A neutral arbitrator (or panel) hears both sides and makes a decision. In most cases the decision is binding — meaning courts will enforce it.

  • Pros: Faster than court, private, expert decision-makers.
  • Cons: Very limited right to appeal; costs can add up; can favor repeat players.

Litigation

Filing a lawsuit in court. A judge (and often a jury) decides the case using formal rules of procedure and evidence.

  • Pros: Public record, strong appeal rights, formal discovery.
  • Cons: Slow, expensive, and stressful.

Why This Matters

Read the fine print

Before signing a contract, check whether it contains an arbitration clause. You may be agreeing to give up your right to take the dispute to court.

Arbitration clauses

These are terms buried in employment contracts, apps, gym memberships, and phone plans that require you to arbitrate any dispute instead of suing. Courts generally enforce them.

Who can sue? (Standing)

To sue, you usually need standing: (1) an actual injury, (2) caused by the defendant, (3) that a court can fix.

Time limits: statutes of limitations

Every claim has a deadline. Miss it and the case is barred — even if you would have won. Deadlines vary by claim and by state.

Jurisdiction: can this court hear the case?

Subject matter jurisdiction is about the court's power over the type of case (e.g., federal courts handle federal claims and cases between citizens of different states over $75,000).

Personal jurisdiction is about the court's power over a specific defendant — usually based on the defendant's contacts with the state.

The basic stages of a lawsuit

  • Pleadings: Complaint and answer.
  • Discovery: Both sides exchange documents, take depositions, and gather evidence.
  • Motions: Requests the judge to decide legal issues (e.g., motion to dismiss, summary judgment).
  • Trial: Presentation of evidence and arguments.
  • Verdict & judgment: The decision and the court's order.
  • Appeal: Review by a higher court for legal errors.

Why most civil cases settle

Trials are expensive, unpredictable, and public. Settling gives both sides certainty and control. Estimates suggest well over 90% of civil cases settle before trial.

Did You Know?

Real-life example

Signed up for a rideshare app? You almost certainly agreed to an arbitration clause — and often a class-action waiver too.