Ever had a disagreement that just would not go away? In business, real estate, or even partnership deals, disputes happen. When they do, many people call a civil litigation lawyer Montreal clients trust and ask the big question... should we go to court, or should we choose arbitration?

In Quebec, both options are legal ways to resolve disputes. But they work very differently. And picking the wrong one can cost time, money, and peace of mind. So let us break this down in simple terms.

What Is Litigation?

Litigation means going to court. Your case is heard by a judge in Quebec’s public court system. The rules come from the Code of Civil Procedure of Quebec, and everything follows a structured process.

You file documents. The other side responds. There are examinations, evidence, and eventually a trial if no settlement happens.

Here is something many people do not realize... court decisions are public. Anyone can access them. For businesses, that can be uncomfortable.

Litigation can also take time. According to data shared by Quebec’s Ministry of Justice, complex civil cases can take several months or even years before reaching a full trial. That is not always ideal when money or operations are at stake.

But litigation has strengths. Judges are experienced, independent, and their decisions can be appealed. If you think a judge made an error, you can go to a higher court.

What Is Arbitration?

Arbitration is more private. Instead of a judge, the parties choose an arbitrator. This person acts like a private judge and makes a binding decision.

In Quebec, arbitration is also governed by the Code of Civil Procedure. It is not informal or casual. It is legally recognized and enforceable.

One big difference? Privacy. Arbitration hearings are not open to the public. For companies dealing with trade secrets or sensitive contracts, this matters... a lot.

It is also often faster. A 2018 study by the Canadian Arbitration Association noted that many commercial arbitration cases are resolved within 12 months. That is usually quicker than full court litigation.

But here is the catch. Appeal rights are limited. In most cases, you cannot easily challenge an arbitrator’s decision unless there was serious unfairness or a legal problem.

Cost Differences... Not Always What You Expect

People often assume arbitration is cheaper. Sometimes yes. Sometimes no.

In litigation, you pay court fees and lawyer fees. In arbitration, you still pay lawyers... plus you pay the arbitrator’s fees. That can add up.

For smaller disputes, court might actually be more affordable. For large commercial matters, arbitration may save money because it moves faster and avoids long procedural delays.

It depends on the situation. There is no one size fits all answer.

Control and Flexibility

Here is something businesses appreciate. Arbitration allows more flexibility.

The parties can choose:

• The arbitrator
• The hearing schedule
• The language of proceedings
• Even the procedural rules

Court does not offer that level of customization. Judges are assigned randomly, and court calendars are fixed.

That is why many commercial contracts in Quebec now include arbitration clauses. It gives both sides predictability.

If you look at major construction and shareholder agreements, arbitration clauses are extremely common.

Enforcement of Decisions

Both systems lead to enforceable decisions.

A court judgment can be enforced through Quebec’s legal enforcement system.

An arbitration award is also binding. Under international agreements like the New York Convention, arbitration awards can even be enforced in over 170 countries. That makes arbitration very attractive for cross border business disputes.

So... Which One Is Better?

Honestly, it depends.

If you want public accountability and full appeal rights, litigation may be better.

If you want privacy, speed, and more control, arbitration might make more sense.

This is where speaking with experienced counsel matters. When businesses look for guidance, they often search for the best law firm in Montreal to understand their options clearly before signing contracts or starting a claim.

Because once a dispute begins, changing course is not always easy.

5 Frequently Asked Questions

1. Is arbitration mandatory in Quebec?

No. Arbitration is only mandatory if the parties agreed to it in a contract. Without that clause, disputes usually go to court.

2. Can we appeal an arbitration decision?

Appeals are very limited. Courts will only intervene in rare cases, such as serious procedural unfairness or lack of jurisdiction.

3. Is arbitration faster than litigation?

Often yes. Many commercial arbitration cases resolve within about a year, while court cases can take longer depending on complexity.

4. Are court cases always public in Quebec?

Yes. Court hearings and judgments are generally public, except in specific confidential situations ordered by the court.

5. Which option is better for small businesses?

It depends on the dispute size and budget. Small claims may be better suited for court, while complex partnership or shareholder disputes may benefit from arbitration.

Disputes are stressful. No one enjoys them. But understanding your options makes the process less overwhelming. And sometimes, just knowing the difference between arbitration and litigation can save you from a very expensive surprise later.