Litigation has long been regarded as the primary method of dispute resolution. However, in practice, it is often criticized for its lengthy procedures, high costs, and adversarial (win–lose) nature, which limit its effectiveness in restoring relationships and accommodating the parties’ interests. As a result, non-litigation alternatives such as negotiation, mediation, and arbitration are increasingly considered more flexible, faster, and better able to preserve relationships between the parties. This study examines the effectiveness of dispute resolution methods: litigation, mediation, arbitration, and negotiation, by focusing on key aspects, including procedure, cost, time, flexibility, and legal certainty. This approach is used to identify the characteristics of each method in responding to various types of disputes, particularly within complex business and civil law contexts. The findings indicate that no single method can be considered universally effective for all types of disputes. Litigation remains relevant as an ultimum remedium in the enforcement of formal law, especially when binding and enforceable decisions are required. Meanwhile, negotiation serves as the simplest, fastest, and most cost-efficient initial option, allowing parties greater autonomy in reaching agreements. Mediation has proven effective in producing collaborative, consensus-based solutions that support long-term relationships, while arbitration offers a balance between efficiency and legal certainty through final and confidential decisions.
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