ADR and Litigation Compare the Costs!

INDIVIDUALS and companies must pay up to an additional $1200 to launch legal proceedings under a new state government measure opponents claim will affect the public’s ability to access justice. The increase, a State Budget measure introduced on July 1, means companies with more than 20 employees now pay $3000 to issue a summons through the Supreme Court, while individuals pay $2126 up from a flat feeof $1797 last financial year.

It makes South Australia the most expensive state in the country in which to issue a summons, and compares to $2142 for a company in NSW, $1529.20 in Western Australia, $1050 in Queensland, and a flat fee of $767.40 for both companies and individuals in Victoria.
Australian Lawyers Alliance state president Tony Kerin yesterday expressed concern the fee hikes could affect people’s ability to access justice.

The higher the fees, the greater the hurdle that South Australian plaintiffs have to jump through to obtain justice he said.

Law Society President Ralph Bonig said it was the first time the filing fee had been split between individuals and companies, and was part of a pattern of government-mandated legal fee increases aimed at raising revenue rather than upgrading court infrastructure.
A spokesman for Acting Attorney-General Patrick Conlon yesterday said the hike was part of steps to ensure a strong Budget position.

If this new law is passed, just the cost to file a claim in court will be close to $3,000.

Disputes that are channeled early to an alternative dispute resolution specialist can often be totally resolved and disposed of for under $5000.

Based on this stark comparison, shouldn’t everyone be focused on how to maximize the use of ADR in the justice system?

Christopher Whitelaw

Barrister and Mediator