Litigation is not the only means available for settling disputes: 

Mediation:

Mediation is a structured process of negotiation whereby an independent person helps the parties to arrive at a solution to a dispute. There is no rigid procedure but mediation will usually involve a preliminary conference at which the mediator will arrange for any preliminary steps to be taken which may assist in bringing the parties to a solution such as arrangements for exchange of information or reports.

Mediation. This usually involves the mediator making an opening statement followed by statements by each party. Joint or private sessions may then be held to suggest possible strategies for resolving the dispute. 

Negotiation:

In simple terms, negotiation is informal discussion between the parties to see whether a settlement can be achieved. Negotiation can occur before litigation is commenced or up until a final determination by a court and it is in this way that many disputes are settled without a decision by a Court. 

Conciliation:

A conciliator usually works by attempting to negotiate between the parties without necessarily bringing the parties together. In some jurisdictions, such as Workers Compensation, it is compulsory for the parties to attempt conciliation before commencing litigation. 

Arbitration:

Arbitration is similar to a court hearing in that a person, called an arbitrator, hears the evidence and makes a decisions. It is possible for the parties to agree to submit to the decisions of an arbitrator and in some jurisdictions, the court will have its own arbitration scheme to which it may refer matters. 

FACTORS INFLUENCING YOUR CHOICE OF PROCESS

The strength of your case.

Usually your solicitor will start assessing the strength of you case by conducting an initial interview with you. At this initial interview your lawyer should be in a position to give you some preliminary advice about the strength of your case. Sometimes additional investigations are required. Your lawyer will analyse the information you provide and the results of any investigations in terms of the law which might apply and whether there is sufficient evidence to prove all of the elements necessary to be successful in court. Your lawyer may well advise you at this point that you have no case or that your chances of success would not justify the expense of litigation. In analysing the evidence available to prove your case there may be other factors which would adversely affect the presentation of your case in court. For example, if an important witness would not be convincing when giving evidence this might influence your lawyer to advise an alternative method of dispute resolution. 

Read on about Understanding Litigation.