Early Neutral Evaluation Case Study

Overview

This case study shows how Early Neutral Evaluation (ENE) can help parties in large, complex litigation to resolve key costs issues early, saving time and expense for all involved.

The Situation

The parties to a large and complicated group action wished to have the view of a CADR-appointed expert about the reasonableness of the hourly expense rates charged by the Claimants’ solicitors.

In group litigation, costs disputes can be particularly significant as they affect multiple claimants and can run into substantial sums.

The Need for Early Resolution

Resolving the expense rates issue early was important because:

• It affected the overall recoverability of costs across the group
• Unresolved, it would have led to protracted court proceedings
• Early clarity enabled better case management going forward

The Process

1. Agreement to ENE - Both parties agreed to seek an early neutral evaluation
2. Appointment - A CADR expert was appointed with relevant expertise
3. Submissions - Parties presented their positions on the appropriate rates
4. Evaluation - The expert provided their view on reasonableness

The Outcome

Obtaining an early opinion enabled the parties subsequently to reach agreement about the rates, thereby avoiding the need to go to court for a judicial decision.

This resulted in a considerable saving in terms of time and cost to both sides.

Key Benefits

• Early Resolution - Key issue resolved before trial or detailed assessment
• Cost Savings - Avoided expensive contested court hearings
• Informed Negotiation - Expert view enabled parties to negotiate realistically
• Case Management - Allowed the litigation to proceed more smoothly
• Relationship Preservation - Less adversarial than contested court proceedings