The body overseeing the modernisation of the civil justice system is calling for an "online court" to be developed in England and Wales to reduce costs.
The Civil Justice Council's report recommends an Online Dispute Resolution system, which would see judges deciding some non-criminal cases online, without the expenses generated by a court.
The report suggests a pilot followed by a full roll-out in 2017.
Her Majesty's Courts and Tribunals Service says it welcomes the report.
The proposed scheme would include online tools to diagnose and resolve disputes, online facilitators to help parties reach agreement, and if that fails, online judges whose rulings would be as binding as court rulings.
The BBC's legal affairs correspondent Clive Coleman says the report is not calling for improvements to the existing civil justice system, but for a radical and fundamental change to the way courts deal with low-value claims.
It is based on the idea that a court is a service rather than a place, and so envisages a state-run online system for smaller claims, running alongside traditional civil courts such as county courts, small claims courts and tribunals.
Electronic interactionThe report's principal author, Professor Richard Susskind, said: "Online Dispute Resolution is not science fiction.
"There are examples from around the world that clearly demonstrate its current value and future potential, not least to litigants in person.
"On our model, an internet-based court would see judges deciding cases online, interacting electronically with parties.
"However, our suggested online court has a three-tier structure, and we expect most disputes to be resolved at the first two stages without a judge becoming involved."
Under the proposals, tier one would be "dispute avoidance", helping people diagnose their issues and identify the best way of resolving them.
Tier two would be labelled "dispute containment" using facilitators to help the parties reach agreement on resolving the issue.
Finally, tier three would be "dispute resolution", employing the use of online judges to consider cases online, largely on the basis of papers received electronically, but with an option of telephone hearings.
Lord Dyson, chairman of the Civil Justice Council, said: "This an important and timely report.
"There is no doubt that ODR has enormous potential for meeting the needs - and preferences - of the system and its users in the 21st Century.
"Its aim is to broaden access to justice and resolve disputes more easily, quickly and cheaply. The challenge lies in delivering a system that fulfils that objective."
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