A Legal And Economic Analysis Of Small Litigation

The small claim action was established by the Civil Procedure Law which wasrevised on August31,2012.“The simple civil cases heard by the basic people’s court andthe court sent by it, which compliance with this law’s regulation in Section1of Article157, whose bid is below30%of the average annual wage of their previous-yearemployments in the provinces, autonomous regions and municipalities, carry out theone-final trial”. That is, on the base of litigation cost quite, small claim action both ensurethe people to access the justice and promote the litigation efficiency, which is consistentwith the three principles of law and economics: benefit, supply and demand as well asproportionality.Based on the economic analysis of the small claim action’s basic theories and itsrunning, and learning from the small claim procedure’s regulations and its practicaloperations in our country, the paper proposes the relief mechanism which is different fromour country’s procedural guidelines of the small claim action and carries on the researchand discussion by economic theory.This thesis consists of three chapters and nine sections. The first chapter mainlydescribes and explains something basic about the small claims and the economics of law,most of which introduces the small claims’ legal standards, admissible rules, judicialprocedures and relief mechanisms. By discussing their common analytical methods andtechniques, the paper shows it is acceptable to analyze the small claims with law andeconomics. What’s more, from litigation balance, efficiency and the pursuit of the benefitsof the parties, the paper explains to us further that it is necessary to analyze the smallclaim with the economics of law.The second chapter is a dynamic analyzes of the small claims with law andeconomics. The first stage is the prosecution. By calculating the expected value of smallclaims and its prosecution cost, it shows that a lower suing cost can protect a party to access to justice. And then there is an analysis of the economics of law. The second is thereconciliation, another approach for dispute resolution with the background or thediversification of economic benefit, which can not only minimizes social costs and canalso reduce the risk of responsibility. Finally, the trial stage, the last stage, mainly analyzesthe cost-effectiveness of litigation, the judge’s independent value, and supply and agencyissues related to legal services.The third chapter is the focus of discussion on the most controversial reliefmechanism, which analyzes the current value and the shortcomings of the required reliefmechanism of small claims and desires to reshape the proposed mechanism. Through theanalysis of the appeal, combined with the mission of small claims under the current socialtransformation and redistribution of benefits and the international economic integration,the paper raise that the objections to the referee is suitable for China’s relief mechanism.As a whole, the small claims action has its own unique value. Of course, there is aneed for improvement. From the perspective of economics, the economics of law gives usa comprehensive understanding of small claims and asks us to realize the great potentialinfluence of law and economics as a new cross-discipline edge subject. For thedevelopment of anything, we should discuss it from different angles. We shouldn’t getlocked into our own range of disciplines, which will have effect on our greater progress.Only by widening our horizon can we see the unexpected future, which is the subject ofthis article.