Monday, April 20, 2009

Financing A Proper Government - Legal Costs

Courts in a properly governed LFC state would only prosecute 1 crime, the initiation of force. Gone are the state contrived, victimless crimes that clog up our courts like drug use, drunkenness and speeding tickets (though the Road companies would likely have contractual stipulations about such things). As a result the sheer volume of cases being seen by the courts would be drastically reduced as would the cost of running the judicial system.

Although the crime of initiating force deals with exactly that, there is a definite delineation between physical force (and the threat of it) and non-physical force. In order to be clear I will refer to these as Physical and Property crimes respectively. Physical crimes like assault, murder, robbery, extortion and the attempt thereof have at their base either actual physical harm, or the promise of physical harm. Whereas property crimes like fraud, theft (dealing with property not in the direct possession of another person as opposed to robbery), embezzlement and so forth do not have a physical aspect.

At this point I do not propose an overhaul of the justice system, (though certainly punishments ought to be more objective and less arbitrary than they are) what I would like to do is create a system that recoups much of its own costs. The thought that leaps to mind almost immediately is that if the court is relying on money recouped from the criminals for its own continued operation then that creates a situation where there is an incentive to convict and the impartiality of the court could be compromised, and that is true. Our legal system is supposed to be based on the idea that one is innocent until proven guilty. A judge has no incentive to prove guilt or innocence and that is the way it should remain. For as this story shows, if you monetise and incentivize the legal system judges can prove to be the real criminals.

So the decision of criminality must remain separate from the financial recovery of costs that accompany a legal punishment. With this in mind I propose that a financial audit be conducted for each legal case and that it be done by an independent 3rd party whose payment is unrelated to the financial recovery.

The system could be designed so that it objectively determines the actual cost incurred by each party (prosecution and defence) and determines the financial responsibility based on an objective set of rules and regulations as well as the courts findings.

I do not think that this would necessarily mean that the guilty would automatically be charged for all the costs incurred. For example, if the prosecution in a murder trial spent thousands of dollars tracking down a false lead that had nothing to do with the actual crime then the defence should not be liable for that cost.

There may be another benefit of this plan in that taking another person to court could mean significant financial cost should a case be deemed to have no warrant, or the ruling is unfavourable. I wonder how many small claims and civil disputes would be handled by rational people on their own without the law being involved if the cost of the trip to court was objectively determined?

3 comments:

  1. Sorry, but that wont work. The "3rd party" would be known by the judges, they would work closely together and probably sit in the same building. This creates an environment where judges and 3rd party could easily conspire to extract money from the richer party.

    It can be seen with police that there is a feeling of "us versus them" which is why cops are rarely if at all convicted of crimes although there is an internal affairs department. The same thing would happen with your 3rd party approach. They would feel to be part of the government and treat judges like family and cover their crimes.

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  2. Well I think you are taking a lot for granted here. I'll allow that any system can be played, and in that respect this one is no different.

    But...

    For every one of your concerns I can posit a solution. The auditors do not have to be based in the same building. They might not be known to the judges (they could be assigned from different jurisdictions and randomly selected.

    In fact there is no reason why the Auditor should be anywhere near the court and he certainly shouldn't know which of the two principles in the case is the richer.

    The problem with the IAD at police departments as you've already alluded to is that they are themselves part of the police force. That would definitely not be the case (as I saw it) here.

    And these Auditors would definitely not be a part of the government. Their pay would come from the company that employs them. and that company would in turn be paid a set fee regardless of the amount of award the Auditor assigns to a case.

    Heck the company could institute a rule forbidding any fraternization with any Judge while the Auditor is in the employ of the company.

    There are options galore. None is so perfect that it can not be corrupted, but to unequivocally state that "that wont work." is unfounded speculation.

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  3. To some extent, this function already exists in Canadian courts. It's not called auditing but rather assessment. A judge can order an assessment of legal fees for example, and the lawyer has to supply and answer to the assessment officer who scrutinizes the fees & disbursements being sought for payment from the losing party or to be paid out of settlement funds.

    Of course, this does not address the costs of the court system itself. Part of the problem with the court system at present is that there is no set list of costs for a wide range of services. There are some fees charged - to open a lawsuit and file a statement of claim costs something like $180, to file a motion costs $127 or so. These are token costs of course when one takes into account the number of people whose efforts & contributions to a given case are not factored in or for which there is no Cost Grid including the judges, law clerks, the court support staff, administrators, clerical staff, and so on.

    Paying "costs" in the legal context is part of the risk of losing the litigation and refers to paying the legal costs as agreed between the parties or failing agreement, as ordered by the judge. These costs relate to the costs of the lawyer's fees and the costs of the token government fees charged (which forms part of the disbursements.)

    All the costs of judge time, whether or not a trial was necessary, do not form part of those costs.

    It would take a major change in focus and approach for there to be costs of court itself. Much hue & cry about "access to justice" would of course ensue at the attempt to set up such a cost structure, especially since paying one's lawyer is already such a major obstacle for many people. Indeed, the number of self-represented litigants is growing each year and is due in large part to people's inability to afford lawyers.

    I think that contract insurance would be an excellent way for the government to properly fund the court system. But in order to know how to formulate such policies of insurance, there needs to be a costing exercise which identifies rates of judge time, and the costs of all the individuals who help make all the kinds of court appearances possible. Other than trials, there are for example motions, pre-trials and in some cases case management which involves a lot of hands-on timetabling and overseeing of complex cases. This is all quite apart from the lawyer-centric stuff of discoveries, filing of material with the court, research, preparation for and time spent in court.

    The current system is definitely reaching a crisis point. More & more people are unable to pursue a legal avenue to resolve disputes.

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