Govt moves to limit influence of wealthy litigants

23 June 2009

The Rudd government is moving to crack down on wealthy litigants who attempt to win court cases by pumping so much money into them their opponents simply give up.

Litigants and lawyers before the Federal Court will be under an obligation to conduct cases efficiently under reforms announced on Monday.

"Australia can't afford a legal system which gives to `monied might the means abundantly of wearying out the right', " Attorney-General Robert McClelland said when introducing the draft laws to parliament.

He was quoting Charles Dickens' Bleak House.

Mr McClelland said the legislation would introduce "an overarching obligation to facilitate the just resolution of disputes as quickly, inexpensively and efficiently as possible".

The reforms follow other changes to the federal court system announced in May, which, if passed, will see the Federal Magistrates Court scrapped.

The attorney-general said recent civil cases concerning Alan Bond's failed Bell Group and the unsuccessful C7 sports channel cost taxpayers millions of dollars.

"This is money which could have been better used in many other areas of the justice system, not least legal aid," Mr McClelland said.

Under Labor's proposed changes, the Federal Court will have the power to impose cost penalties on parties and their lawyers if they fail to conduct their cases efficiently.

The court will also be able to limit the length of submissions, limit the number of witnesses and force parties to follow time limits.

Appeals pathways will be streamlined.

"These reforms are essential in enabling federal courts to deliver a fair, effective and affordable service to litigants," Mr McClelland said.

Article By Julian Drape
Original article source: CCH News - http://www.cch.com.au/