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J2.4. Case management and costs

251. The concern about case management adding to costs deserves further mention. An important aim of case management is to save costs by preventing parties or their advisers spinning out proceedings. However, there is clearly a risk that case management may lead to more court hearings or other case events which may require the incurring of additional costs.
252. This risk must be recognized (Note 195) and steps taken to contain it. For example, judges can be trained and rules designed :-
* To keep case management conferences to a minimum and only where they are considered truly necessary.
* So far as possible, to provide for self-executing sanctions in orders made so that hearings to enforce case management directions or compliance with the rules are made unnecessary.
* To encourage the parties to reach reasonable agreements on procedural matters without need for court approval of their agreed arrangement.
* To provide for effective sanctions where a court hearing has been made unavoidable because of unreasonableness or incompetence on the part of one party or his advisers.
Many examples of rules with aims such as these will be mentioned in Section K below.
253. The expense necessitated by an exercise of case management should only be accepted (both for the purposes of rule design and court practice) where it is reasonable to believe that such expense can be justified by the benefits it will produce. This was Lord Woolf's approach :-
"...... the procedural judge must bear in mind the costs of case management conferences, in terms of both the parties' costs and of court resources, and they should not be ordered unless they would clearly be of value. ......" (Note 196)
254. The case management rules may therefore be designed, for example to put into effect a procedural system with features like the following :-
254.1 A judge or master designated to act as procedural judge is given an early look at the nature of the case as disclosed in a written form filed by the parties. The form indicates the features of the dispute (its nature, the scope of relevant documents, the number of likely witnesses, any need for experts, etc). The parties are also required to state on the form what directions they consider necessary (agreeing them if possible). With this information the judge gives directions in writing (without any court attendance) fixing a timetable which takes the case from the beginning to the next phase considered realistically susceptible to early procedural management.
254.2 The procedural judge has great flexibility in deciding what directions to give. If the case looks simple, he may confine himself to a pleadings and discovery timetable without any case management conference, immediately fixing a trial date or a "window period" for trial. On the other hand, if it is a complex case involving many parties, documents, witnesses and experts, he may set a timetable with dates for a case management conference and a pre-trial review to focus the parties' efforts at each stage. He may or may not consider it worth fixing a "trial window" at the outset.
254.3 Once a timetable is devised, the court holds the parties firmly to its "milestone" dates but encourages the parties to agree as much as they can in between such dates and to reserve to the scheduled hearings any interlocutory disputes, hoping to reduce the number of interlocutory summonses issued.
255. While (as previously discussed) it is always difficult to assess the net costs implications of particular reforms, the ALRC (Note 197) has pointed to some evidence in Australia that case management achieves net cost savings from promoting efficient management of court business and early settlement, although it considers the evidence inconclusive so that "the jury is still out" on this point. Many of the observations made as to assessing the costs implications of pre-action protocols apply equally to the costs implications of case management.
256. Readers are consulted as to whether provisions making case management part of the overriding objective and setting out the court's case management powers should be adopted: Proposals 2 and 3.

 

Notes

195 As Lord Woolf did: WIR p 32, §21(a).  <back>
196 WFR, p 60, §7.   <back>
197 ALRC No 89, §6.30-§6.31.  <back>


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