Economic modelling of the wider costs of legal disputes

The Ministry of Justice (MoJ) is seeking a Supplier to carry out a feasibility study and economic analysis of the financial and economic impacts of legal disputes for Government, businesses and individuals.

The (MoJ) is exploring the impact of interventions such as Alternative Dispute Resolution and early legal advice on the outcomes of different types of legal disputes. The MoJ is interested in understanding the range of costs to different parties (such as individuals, business, government) connected to a legal dispute. For example, for an individual a dispute could involve both the cost of accessing legal advice and the emotional cost (such as stress, anxiety, absence from work through ill health, etc).

A legal dispute refers to any action, suit or proceeding between parties in connection with a disagreement. Legal disputes take many forms, ranging from minor consumer issues to personal injury, employment, welfare, family, and commercial matters, and involve a range of services along the way. The MoJ Legal Needs Survey (2015) found that almost a third of adults (32%) reported that they had experienced one or more of the civil, administrative or family legal problems in the 18 months before interview. Adults were more likely to experience certain types of problems than other types of problem. Over a quarter (27%) of adults had experienced a civil legal problem, compared with a tenth (10%) of adults who had experienced an administrative legal problem and 1% who had experienced a family legal problem.