Saving Costs

John Peysner will be seeking to ensure that alternative dispute resolution really saves money and exploring ways in which HEIs can ensure that there are 'reality checks' about escalating costs in the course of the conduct of disputes.

The Issues

HEIs have become large, and sometimes very large, organizations and businesses whose activities are in a mesh of contractual and administrative arrangements with individuals and organizations who are increasingly aware of their own rights and prepared to take action to enforce what they see as their entitlement to redress. HEIs also need to protect their own position whether in the area of commercial contracts; employment or relationships with students.

The legal profession has become ever more aware of this market and specialised education lawyers while still in small numbers now play a major role in this area. (The number of solicitors specializing in education increased from 706 in 2004 to 814 in 2006: Source Law Society).

The use of lawyers and litigation is increasing in the sector and with this is an increasing legal ‘spend’ with commercial lawyers hourly charges breaking the £300 per hour barrier. Every HEI needs to consider whether they are getting value for money from their advisers when they use them in disputes. In particular Alternative Dispute Resolution (in particular mediation) is seen as a panacea to facilitate speedy and more cost effective dispute resolution but this needs to be tested.

I am seeking answers to the following questions:

  • What is the extent of disputes within the HEI sector and are they in fact increasing?
  • How often do these disputes end in court or tribunal cases? What interventions prevent this?
  • How often are external lawyers used? How are their costs monitored and budgeted for?
  • How often is mediation used to resolve disputes? How successful is it? How much does it cost? Does it save time? Does it save costs compared to traditional dispute resolution methods or does it involve paying twice: once for an unsuccessful mediation and then for a tribunal or court case?

I am interested in hearing from anyone in the sector with a view and I hope to interview key players. I will be preparing a report on where we are and where we should be going in creating a fair, just and cost effective system to resolve disputes. I can be contacted on jpeysner@lincoln.ac.uk.

John Peysner

My Background

I am a Solicitor and Professor of Civil Justice at Lincoln Law School, University of Lincoln and an Honorary Professor at City University London. I was formerly at Nottingham Law School where I edited "The Litigator" and was founding Course Leader of the LLM in Advanced Litigation. I have had seventeen years experience in litigation practice, including Law Centres, Legal Aid and latterly, defendant Medical Negligence. I writes and teach on conditional fees, the civil justice changes, legal aid, litigation skills and funding, risk management and assessment, competition and World Trade Organisation law. I have conducted research on case management, costs, after the event insurance, civil procedural systems, legal aid, judicial education, consumer attitudes to solicitor’s services, the impact of the Legal Services Bill and testing in house against contracted legal services. I was a member of the Lord Chancellor’s Committee on Claims Assessors (The Blackwell Committee) and wrote the first draft of the report. I was a member of the Civil Justice Council (2002 to 2006) and chair of the Costs Committee. I am consultant editor of the Law Society’s ‘Civil Litigation Handbook’. I was joint author of ‘Compensation Crazy: Do We Blame and Claim too Much?’ (Hodder & Stoughton & the Institute of Ideas), 2002. I am a member of the Civil Committee of the Judicial Studies Board and Academic Adviser to the Northern Ireland Legal Services Commission. I am an Investigating Officer for the University of Lincoln in respect of complaints arising under the University’s Disciplinary, Anti Bullying and Harassment policies.