arbitration

Advantage

Disadvantage

Both

Neutral

Comment

Faster than litigation

Yes

Depends on the nature and complexity of the dispute, extent of agreement between the parties and wide variety of other factors

Privacy and confidentiality of proceedings

Yes

The proceedings are usually conducted in private, where the parties. This is the exception to the rule in litigation.

Cost-effective

Yes

While there are possibilities for real savings in arbitration, the difference between the costs incurred in litigation are usually not as great as they once were. In many arbitrations, costs exceed those in litigation

Ability for parties to appoint Tribunal

Yes

In litigation, a party cannot select the judge that will hear its case

Location or seat

Yes

The parties are able to select the place of the arbitration in the same way as a jurisdiction clause.

Enforceability

Yes

Decisions are readily enforced with the New York Convention 1958.
More difficult to enforce court judgments in some countries, and so the jurisdiction of the location of assets of the parties can be all important.

Appeals / Binding Arbitration

Yes

Appeals to Court to challenge the correctness of decisions are usually limited to a few grounds, such as fraud and irregularity. This is an advantage and disadvantage, depending upon whether you are successful or not in the first instance.

Imbalance of representation

Yes

It is said by some that powerful law firms give the party represented by them an advantage. While an imbalance of equality of arms may be a factor, there are highly skilled law firms which are not large firms more than capable of handling such disputes for a fraction of the cost.
There is a segment of the commercial businesses are trapped in the thinking of use brand name firms. It is the solicitor which represents the party which matters, and not the brand of law firm.

Cost of Arbitrator

Yes

These are usually shared by the parties in the first instance and paid by the losing party.

Recovery of legal fees

Yes

Recovery may be restricted. Again, your perspective depends upon whether you are successful or not.

Informality

Yes

All things being relative, arbitration is less formal than litigation. That said, it is a formal dispute resolution process that does not require attendance at Court.

Injunctions

Yes

Not available in arbitration, but there are avenues to obtain injunctive relief if it is urgent or required.

Procedural Rules

Yes

Procedural rules differ, however they are in substance the same in effect.