COUNTYWIDE : Ex-Judges Find Gold in Rulings

You could look them up in the Yellow Pages, as you could your ordinary handyman. But while they are handy, there’s nothing ordinary about them.

They are retired judges--and they are for rent .

With litigation costs exploding and the public increasingly unhappy with the time and cost of getting a case moving through the judicial system, more individuals, companies and public agencies are turning to these retired judges for so-called “alternative dispute resolution.”

The retired jurists act as mediators, arbitrators or private referees in legal disputes. Cities often use them as hearing officers in such cases as nuisance abatement and business license revocations, and in medical disability and other employee-related matters.

Resolving disputes has become a multimillion-dollar industry, and an Orange-based company, Judicial Arbitration and Mediation Services, founded in 1979 by former Orange County Superior Court Judge Warren Knight, is one of the biggest in the nation.

Knight, 63, worked at a friend’s office in the first six months of his operation. Now the company’s Orange corporate headquarters houses 15 hearing offices with 30 judges. On average, JAMS hears 1,000 cases a month, 140 in Orange County alone.

After a venture banking company, E.M. Warburg of New York, bought 56% of the company for $15 million in 1990, Knight said, JAMS established offices in five states, employing 200 retired judges and 120 other people. Last year, he said, it grossed $22 million.

“It’s nice to see this ‘baby’ grow,” said Knight. “It’s gratifying that it allows myself and other retired judges to participate in the administration of justice.”

Knight said his company offers alternative dispute resolution for cases that involve money or property.

While court cases run into months, even years, Knight said disputes brought to JAMS are usually resolved in four to six weeks. Some take just a couple of sessions, he said.

Cases are resolved either by mediation or arbitration, Knight said. In mediation, the judge assists in negotiating a settlement and the decision is not binding. Each side makes a presentation, orally or in writing, and the judge shuttles from one party to another until they reach a compromise.

Arbitration hearings are like informal court trials, Knight said. Each side presents evidence, such as medical or police reports, and can call upon expert witnesses, if necessary. After lawyers summarize their case, the judge is given 30 days to make a binding decision, which is not appealable, Knight said.

JAMS Chief Executive Officer John Trotter said the company’s fees range from $300 to $350 per hour, which both parties share. A typical automobile accident case may be settled in three hours, he said.

“We serve the insurance industry, which is looking to reduce its cost, and the injured client who wants to get his money as soon as possible,” Trotter said.

Trotter said his company was built on a simple business concept.

“It’s like the Hula Hoop. Someone should have thought about it sooner,” he said.

As far as cities are concerned, however, the cost of using such services can be prohibitive, according to city officials who have used retired judges as hearing officers.

“Using a judge is a fine idea. However, it’s just too expensive,” said Clint Sherrod, community development director in Mission Viejo, which used retired judges on nuisance abatement cases until a year ago.

Sherrod said the retired judges charge about $3,000 to hear a case, analyze data, and make a report to the city. He said Mission Viejo uses its city staff to conduct the hearings now because of the cost.

In Los Alamitos, City Atty. Thomas Allen recommended JAMS judges as hearing officers when the City Council passed a nuisance abatement ordinance recently.

“The retired judge creates a more serious forum,” Allen said in an interview. “They are uniquely qualified to resolve disputes.”