Litigation

Disputes may be resolved by action before a national Court, usually where the defendant is domiciled.  Such action, referred to as litigation, does not require any agreement between the parties to the dispute.  To this extent, it differs fundamentally from other means of dispute resolution (e.g. arbitration), which depend on the existence of a valid agreement between the parties. The procedure is also usually fixed irrespective of the will of the parties.

Litigation is not only resorted to because of the absence of an agreement.  The coercive powers of the Courts, particularly over third parties, is an advantage which is not usually available to other means of dispute resolution.  Further, some of the Courts offer summary procedures leading to a quick judgment in respect of certain claims (e.g. claims for debt).  There are, however, disadvantages (e.g. limited enforceability of the judgement abroad) which can make Court action less attractive.

Key Benefits

	No prior agreement required.
	Jurisdiction over third parties
	Summary judgment