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  4. English small claims should be settled online, report claims

English small claims should be settled online, report claims

16th February 2015 | civil litigation

A new online dispute resolution system should be developed for lower value civil claims in England & Wales in order to increase access to justice, according to a report published today.

Prepared by a working group of the independent Civil Justice Council under consultant and IT expert Professor Richard Susskind, the report calls for a dedicated state-run "online court" to operate alongside the traditional court system, for claims worth up to £25,000.

It explores the case for online dispute resolution (ODR) and the sorts of issues that need to be resolved if it is to fulfil its potential. It provides a series of case studies of public authorities and businesses that are already employing ODR, both in the UK and internationally.

Rather than streamline the existing court system and focus exclusively on dispute resolution, the report recommends a three tier online court that takes a radically dsifferent approach by focusing on dispute avoidance and dispute containment as well as dispute resolution.

In the working group’s model the route taken by those seeking redress for a problem or grievance is via three stages, although the dispute may be resolved at any of them:

Tier 1 – Dispute avoidance: online evaluation of the problem with the support of interactive aids and information services. This will help people diagnose their issues and identify the best way of resolving them.

Tier 2 – Dispute containment: online facilitation, through trained, experienced facilitators bringing an objective eye to the problem and trying to help the parties reach agreement on resolving the issue.

Tier 3 – Dispute resolution: online judges, with professional judges deciding suitable cases online, largely on the basis of papers received electronically, but with an option of telephone hearings. The decisions would be as binding and enforceable as court rulings.

The report advocates that pilots should be undertaken, in consultation with consumer groups and the legal profession, to test online courts in practice, focusing on small claims of low monetary value and complementing the existing small claims mediation process. Legislation may be needed to enable this.

Considering the policy and legal issues arising from an online court, such as whether it offers a fair hearing process, and whether it excludes people with no easy access to technology, the report reflects what it sees as the realities of the situation – that people are "voting with their mice" and conducting online transactions – and questions whether the court systems are responding sufficiently to this.

Professor Susskind commented: “This report is not suggesting improvements to the existing system. It is calling for a radical and fundamental change in the way that our court system deals with low value civil claims. Online dispute resolution is not science fiction. There are examples from around the world that clearly demonstrate its current value and future potential, not least to litigants in person.

“On our model, an internet-based court would see judges deciding cases online, interacting electronically with parties. However, our suggested online court has a three tier structure, and we expect most disputes to be resolved at the first two stages without a judge becoming involved.”

Lord Dyson, the Master of the Rolls and chairman of the Civil Justice Council, added: “This an important and timely report. There is no doubt that ODR has enormous potential for meeting the needs (and preferences) of the system and its users in the 21st century. Its aim is to broaden access to justice and resolve disputes more easily, quickly and cheaply. The challenge lies in delivering a system that fulfils that objective."

Click here to access the report.

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