Woolf's three tracks

Litigation within the construction industry should be quicker and cheaper if the recommendations of the Woolf Report for reform of the civil justice system are adopted. The proposals give more power to judges to control cases, promote alternative dispute resolution and curb the advantages of wealthy parties over poorer ones.

Woolf proposes a new three track system. Small claims courts will deal with cases for claims up to œ3,000. A 'fast-track' court with new procedures, tight deadlines and fixed costs will take on cases for up to œ10,000. Anything over that sum or very complex cases, will go before a 'multi-track' system, which will also have new procedural controls and new technology.

Roger Button, head of construction at Eversheds believes that most firms involved in construction will prefer to use the method of adjudication provided for in the Housing Grants, Construction and Regeneration Bill, which received Royal Assent last week.

Button commented: "There are circumstances, however, in which adjudication is not practicable and a construction dispute will go to the courts. At present, the relatively high cost and complexity of the system chokes off many claims - some of these may now become commercially viable, although the recommendations of the report make it likely that many will settle out of court. The overall effect may be that more construction claims will come before the courts, but fewer will go to trial."

One other recommendation aimed at reducing costs is the use of a court-appointed expert. But Button points out that many litigants will still want their own experts and although Woolf gives power to the court to allow this, Button believes it is not yet clear how this will be exercised in a construction context.

"It is likely in smaller disputes that the single expert will be preferred. The effect of this may well be to encourage settlement by reducing the scope of the differences between the parties," said Button.