Feb. 12 (Bloomberg) -- Brian Demyanovich’s dreams of opening a store to sell swimming pools are circling the drain as the recession stalls New Hampshire’s court system.

Demyanovich’s suit seeking $80,000 from former business partners is being postponed at least 30 days by a state-ordered suspension of jury trials. New Hampshire is deferring both civil and criminal trials to save money.

“The delay has caused me an awful lot of stress,” said Demyanovich, 51, of Auburn. “I would like to have the money for the store and I can’t get the thing off the ground.”

Governor John Lynch, who is scheduled to unveil a new budget proposal today, requested cost-cutting in the court system to help allay what is now a $100 million revenue gap. Some lawyers and plaintiffs say putting off jury trials threatens the prompt delivery of justice and integrity of the system.

“Justice delayed is justice denied: The phrase captures concerns that go beyond an underlying case,” said Ellen Shemitz, 47, executive director of New Hampshire Association for Justice, a trial lawyers’ group. “If people find they cannot rely on the courts for timely resolution of disputes, they will begin to lose confidence in the entire system.”

The move will save $73,000 in a $71.8 million annual budget, said Supreme Court Chief Justice John Broderick, who oversees the courts. That’s enough to keep two people employed, he said.

“If it saves two jobs, it will be worth it,” he said.

Eight of New Hampshire’s 10 counties are stopping jury trials for 30 days each on a staggered basis, with some overlap. The suspensions began in December and are to end by May 1, Broderick said.

Waiting for Therapy

Shannon Bouchard, 33, of Sandown said she was so seriously injured in a 2005 car accident that she hasn’t been able to return to work. The mother of three is suing the driver she claims hit her vehicle.

“I need physical therapy and I could need it for the rest of my life,” she said. “They’re going to delay this?”

Demyanovich called the delay “a crock” and said it is reducing his livelihood and taking years off his life.

Almost 400 civil and criminal cases are being postponed, said Laura Kiernan, a spokeswoman for the courts. Of 17 states slashing court budgets, only New Hampshire is curbing jury sessions, said Greg Hurley of the nonpartisan National Center for State Courts in Williamsburg, Virginia.

New Hampshire court officials have been working to tame costs since June, when the Legislature passed a bill requiring a $1.6 million reduction in the judiciary’s budget. In January, the governor asked for $441,000 more, forcing them to dig deeper.

Mileage, Outings Cut

The courts reduced mileage reimbursement for employees, canceled attendance at out-of-state conferences and dropped membership in professional organizations, according to the Web site of the New Hampshire judicial branch.

“They’re scraping for every penny,” said Jeffrey Osburn, 62, an attorney in Manchester. Osburn said that while he sympathizes with the budget-cutters to an extent, juries are crucial to expediting justice.

“It keeps the pressure on for settlement discussions,” he said. Juries are the reason that 90 percent of all cases are settled before reaching a courtroom, he said.

The longer delays last, the more defendants will argue that they were denied their constitutional guarantee of a speedy trial, said Lisa Wellman-Ally, an attorney in Newport. In a worst-case scenario, serious offenders, including murderers, could be released, she said.

“Is it going to happen in the next couple of months? No,” said Wellman-Ally, 44. “But as things continue to be cut, at some point in time, that’s going to be the remedy.”

New Target

The governor has told residents that today’s budget proposal for the two years starting July 1 will cut programs and jobs, said Colin Manning, his spokesman. He will ask departments, including the judiciary, to reduce costs as much as 3 percent from this year’s level, Manning said.

“I don’t think we can run the system” with that funding, said Broderick, 61.

Savings are already being realized by job vacancies. Thirty- four, or 5.5 percent, of the 614 full-time court jobs, excluding judges and security personnel, are unfilled, according to numbers supplied by Broderick’s office.

Seven of New Hampshire’s 59 full-time judgeships also are empty. State judges are paid $137,804 to $151,477 a year.

Supreme Court Justice Richard Galway retired this month, and replacing him could be delayed until July for a projected savings of $68,737, Manning said. Lynch wants to fill the post as soon as possible to prevent tie votes, Manning said.

Two Exemptions

The state’s smallest counties, Sullivan and Coos, were excluded because they have jury trials only every other month. Their combined population represents less than 10 percent of the 1.3 million residents.

New Hampshire’s busiest court, Rockingham County Superior Court in Brentwood, 20 miles from the Massachusetts border, began its participation this week. A total of 151 cases -- 121 criminal and 30 civil -- are being pushed back, according to a list from the clerk’s office.

“The cases do not just go away,” said Osburn, the Manchester lawyer. “Soon the backlog reaches critical mass. It is really the public that loses.”

To contact the reporter on this story: Tom Moroney in Boston at tmorrone@bloomberg.net

Last Updated: February 12, 2009 00:00 EST