Member Article

Online solutions court needs legal costs rules

Proposals to introduce an Online Court to settle everyday disputes such as unpaid bills and faulty goods needs to have a system to cover legal costs if they are needed Owen Williams, Partner at national law firm Clarke Willmott LLP, has said.

Mr Williams, Commercial and Private Client Litigation Partner, says that unless legal costs can be recovered there could be an economic barrier to some people gaining access to justice.

The revolutionary new online court has been recommended by Lord Justice Briggs in a bid to bring greater access to justice for businesses and individuals dealing with small and moderate value disputes.

In his Civil Court Structure Review, published on 27 July 2016, he recommended an “Online Solutions Court” which is likely to be separate from the County Court and regulated by new simpler court rules.

It is anticipated that the new court, which is likely to eventually become mandatory, will deal with all money claims up to £25,000, save for specific exclusions, and unspecified claims.

A “soft roll-out” may see the court dealing with claims under £10,000 at first. The level of claims heard by the court and the type of case it will deal with are to be kept under review with sufficiently complex claims being transferred out of the new scheme.

Owen Williams said: “Even simple cases can raise complex issues. Ensuring that people are not left bewildered and “at sea” over their rights will be one element that will be vital to the new court’s success. Instructing a lawyer at the outset may still be important in many cases to fully understand the merits of the case. It should also be remembered that access to justice is also not just about those who have a one off claim. In the light of these proposed changes businesses who have a large volume of smaller claims will have to think very carefully about how their litigation is managed once an online court becomes a reality.”

“Although it is recommended that public legal education is improved and that, for those who are not willing or able to run their own case voluntary agencies can assist, lawyers may still be used for cases in the online court.

“At present it is daunting to be faced with a blank piece of paper and to have to put together your case for court if you have no legal knowledge. However, the new scheme is designed to guide the litigant through an analysis of their dispute so to produce a document capable of being understood both by their opponent and by the court.”

After the claim is lodged the case is managed and the court will try and assist the parties to resolve their issues. That may involve telephone, online or face-to-face mediation and non-binding ‘early neutral evaluation’ by a judge. Those cases which do not settle will proceed to be determined. That could mean a traditional trial, a video hearing, a telephone hearing or on the documents (or by some combination of those) as best suited to the individual case.

This was posted in Bdaily's Members' News section by Clarke Willmott .