A legal proceeding aimed at resolving disputes between private parties is known as?

The correct answer is civil litigation, as it specifically refers to the legal process where disputes between private parties are resolved through the court system. Civil litigation encompasses a variety of cases, including but not limited to contract disputes, tort claims, and family law matters, allowing individuals or organizations to seek legal remedies and enforce their rights.

In contrast, criminal prosecution involves the government pursuing legal action against an individual for violating criminal laws, which is fundamentally different from disputes between private parties. Arbitration and mediation are alternative dispute resolution methods; although they also aim to resolve disputes, they do so outside of the courtroom and without court intervention. Arbitration typically results in a binding decision made by an arbitrator, while mediation focuses on negotiation and seeks to find a mutually agreeable resolution without imposing a decision. Thus, civil litigation is the appropriate term for the type of legal proceeding aimed at resolving disputes between private parties.