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CHAPTER 1

CIVIL JUSTICE

1.1 Civil justice is essentially concerned with the resolution of disputes (including disputes between private parties and State institutions). The civil justice system consists of much more than the civil courts. It encompasses all the ways in which people can legitimately resolve disputes and enforce their rights and the obligations of others under the law(1). What is crucial is to set the present proposals in this wider context.
1.2 The vast majority of actual and potential legal disputes do not involve court proceedings. Of those that do, only the minority (about 1%) reach a trial before a judge. The courts are nevertheless peculiarly important. They set the framework in which the rest of the system operates.
1.3 Although I have taken the resolution of private disputes to be its fundamental role, it must be recognised that a number of wider benefits flow from the existence of an effective civil justice system. First, it can influence the behaviour of people not directly involved in legal disputes, so helping to maintain order and the rule of law; providing the foundations for economic and social activity; and promoting the performance of particular legal obligations. Secondly, it serves to clarify the law and to produce precedents that can be applied more generally. I return to this issue briefly in paragraphs 5.17-19.
1.4 I start from the expectation that the demand for civil justice in its widest sense is growing and is likely to continue to grow. Justice - by which I mean the satisfactory resolution of disputes - is part of the service sector of the economy. As the economy matures and as wealth and income grow, the overall trend will be for people to want and be willing to pay for more justice(2). Part of this process is that, as society becomes richer, more rights are created and people are better equipped and organised to assert them.
1.5 The 'supply' of civil justice is, however, fragmented and confusing. Annex C attempts to summarise the different sources of help that might be available to people with problems, and how they might seek to resolve them. But the system as a whole is poorly mapped. There are few relevant and reliable statistics.
1.6 Everyone suffers because of this lack of knowledge. Those seeking to use the system certainly do. But so do policy makers and those who administer justice. We have very little understanding of the factors that determine demand and supply in either the system as a whole, or in particular parts of it. One consequence is that it is much more difficult than it should be to make even minor changes, without nagging doubts about undesirable effects elsewhere. This has led to a worrying degree of cynicism about the efficacy of change in general.
1.7 The civil justice system as a whole is not managed coherently, nor do its individual parts seem to be managed with efficiency much in mind. There is indeed a view that efficiency might be incompatible with justice: that it is always desirable and necessary to take infinite pains in order to achieve the best possible result in each case. Desirable though this may seem as a principle, it inevitably comes up against the limitation of available resources. So I have not been overly concerned with absolute notions. It seems to me self-evident that there is not an infinite supply of good justice and that diminishing returns apply here as anywhere else. I have therefore concentrated on efficiency. I take that to mean getting more out of a given level of resources, or the same amount at lower cost.
1.8 I have also asked myself whether the reforms I am considering will be efficient in their own right; and, further, whether they will contribute to improving the efficiency of the whole system of civil justice. This means that cases should not be artificially attracted from another part of the system where they would have been processed in a more cost-effective manner (i.e. at a cost proportionate to the issue at stake).
1.9 This requires that the system be tiered in a logical and comprehensible manner and that disputes find the right place in it. The present civil justice arrangements are so diverse that it is unlikely that this result can be achieved by purely administrative means. There also needs to be a set of signals and incentives which push cases in the right direction and contribute to the efficient settlement of disputes when they arrive. There need to be pressures to allocate costs correctly, contain costs, improve quality, increase output and share risk equitably.
1.10 The sharing of risk deserves particular comment. The resolution of a dispute is inevitably a risky business. Those involved need to have as much knowledge as possible about the risks they are taking - the likely costs and benefits, the probability of success, and the way these change at different stages in the case. It is in my view the responsibility of the professionals in the system - especially the lawyers - to give this advice explicitly. The more they share the financial consequences of this judgement, the more accurate it is likely to be.
1.11 Lord Woolf was concerned with managing the business of the courts more efficiently. On the whole he took the nature of their business as read, without questioning whether some types of case would be better handled in other ways. The reforms he has proposed are intended to reduce cost and delay in litigation. If they succeed, the result will be a greater throughput of cases through the courts at a reduced unit cost. This will be an improvement, provided undesirable new costs are not created elsewhere in the system which outweigh the improvements in the efficiency of the courts.
1.12 The role of legal aid within the civil justice system is to ensure that the less well-off have access to the system on a broadly equal basis to everyone else. This is more than a matter of securing benefits for the individuals involved. The credibility and, ultimately, the legitimacy of the civil justice system will be diminished if access to it is unequal in the sense that particular groups, particularly the poor, are seen to be systematically excluded. The system could not then achieve the wider goals described in paragraph 1.3.
1.13 Like civil justice itself, however, the objective of legal aid cannot be viewed in absolute terms. This is because resources are scarce and there are many alternative uses to consider. So it is important that the legal aid scheme obtains value for money and that the resources devoted to it are carefully targeted. It should be subject to the same kind of efficiency criteria as the rest of the system. So far as possible, it should be structured in a way that does not destroy or obscure the signals and incentives described in paragraph 1.9.
1.14 The role of Government should be threefold:
  • to provide just and efficient court services. That is the focus of the civil justice reforms discussed in chapter 2. I also make further observations in chapter 5;

  • to ensure that mechanisms are in place to provide cost-effective access to the civil justice system for people who could not otherwise afford it. Chapter 3 discusses the proposed reform of the current legal aid scheme, while chapter 5 considers its further development into a Community Legal Service; and

  • to facilitate the development of logical and comprehensible structures and pressures for efficiency in all parts of the system, both public and privately managed. chapter 5 suggests some ways in which policy may be developed in this direction.

1.15 I have met concern that increasing efficiency and improving access to justice may result in a more litigious society. This is seen as undesirable in overall policy and economic terms. Provided that we focus on the efficiency of the whole system, not just isolated parts of it, I do not consider this to be a valid concern. It certainly does not amount to an argument for keeping costs artificially high.

Endnotes

(1)
The substance of the law - what those rights and obligations are - is primarily a matter for the legislative rather than the justice system, and is of course outside the scope of my review.
(2)
The general upward trend will of course be affected by cyclical factors. For example, there may be more debt or housing possession cases following a period of recession.

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