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Nuisance Suits and Contingent Attorney Fees

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Author Info
Zhiqi Chen (Carleton University)

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Abstract

We demonstrate that contingent attorney fees can play a strategic role in a model of nuisance suits. Specifically, the use of contingency fees makes the plaintiff's threat to go to trial credible. In contrast to previous economic analyses, we show that contingency fees do encourage nuisance suits.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Review of Law & Economics.

Volume (Year): 2 (2007)
Issue (Month): 3 ()
Pages: 2
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Handle: RePEc:bep:rlecon:2:2007:3:2

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Related research
Keywords: Nuisance Suits Contigent Fees

References listed on IDEAS
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  1. Barry Nalebuff, 1987. "Credible Pretrial Negotiation," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 198-210, Summer. [Downloadable!] (restricted)
  2. Rosenberg, D. & Shavell, S., 1985. "A model in which suits are brought for their nuisance value," International Review of Law and Economics, Elsevier, vol. 5(1), pages 3-13, June. [Downloadable!] (restricted)
  3. Bebchuk, Lucian Arye, 1996. "A New Theory Concerning the Credibility and Success of Threats to Sue," Journal of Legal Studies, University of Chicago Press, vol. 25(1), pages 1-25, January.
  4. Patricia Munch Danzon, 1983. "Contingent Fees for Personal Injury Litigation," Bell Journal of Economics, The RAND Corporation, vol. 14(1), pages 213-224, Spring. [Downloadable!] (restricted)
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This page was last updated on 2008-11-13.

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