Tuesday, December 15, 2020

Dynamic Fees for Courts

 

Mural in the Ariel Rios Federal Building

We can clearly foresee that the upcoming years will be difficult for governments and courts as tax revenue will take some time to recover following the Pandemic.  Court budgets being primarily composed of personnel costs will respond by not filling empty positions, layoffs, and reducing service hours and/or days.

I have an idea that could be considered to ameliorate service reductions that were introduced in recent years, famously by ride-sharing companies such as Uber and Lyft, known as “dynamic” or “surge” pricing.  I explain below.

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Dynamic, surge, demand, or time-based pricing (https://en.wikipedia.org/wiki/Dynamic_pricing) is nothing new for last-minute holiday shoppers who wish to deliver or purchase their gift “at the last minute”.  We know that an overnight rush package delivery will cost more.  Other examples are parking in more convenient locations will cost more.  And concert attendees know that the best seats for the best acts will cost more.

So, if there are fewer staff available in the courts, and businesses and those who can afford to purchase services, does not it make sense to apply a surge or express fees to provide resources to meet demand?  I would suggest the following:

1.      A “last-minute fee”, or time-based fees for case parties submitting documents to the courts within two to three hours of a scheduled court hearing. These last-minute filings require more staff and resources to register, scan, organize, and post the documents for use in the courtroom. 

  1.  The “last hour fee”.  I have many friends who are procrastinators (https://en.wikipedia.org/wiki/Procrastination). While they often complain, they understand that their delays can cost them more in fees and particularly in higher airfares.  Knowing this, the airlines have based entire fare structures and services around the last-minute business traveler.  In turn, these costs are passed along in business expenses. 

    I would project that this concept could be applied for the court surge fees.  For courts, the fee would be used to pay for either additional staff or technology to meet the litigant's needs.

  2.  Dynamic discounts.  This approach can be flipped to also provide discounts for parties filing/submitting materials say earlier in the week or day?  Or perhaps so many days before deadlines?  This would encourage good work completion and scheduling practices by the litigants.

  3. Virtual services.  This approach would also provide lower costs for those who might be able to have their matter handled via e-filing and virtual hearings. 
I am not arguing that these ideas make sense in all case matters or all instances.  But it is a possible strategy to think about?

2 comments:

  1. I guess some may argue that this way (especially proposal no. 1) may be dangerously close to the sale of (expedient) justice. It may be pointed out that such proposal creates swift justice for those who can afford paying extra monies. I suppose it may be a rather risky concept...

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  2. Thanks APW for writing. We must always have a way for litigants to have their fees reduced or waived if they are economically disadvantaged. However, many litigants are businesses and corporations where delay can be costly. It is in these instances I think that something like what I propose might be considered?

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