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Nuisance Suits and Contingent Attorney Fees

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  • Chen Zhiqi

    (Carleton University)

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.

Suggested Citation

  • Chen Zhiqi, 2006. "Nuisance Suits and Contingent Attorney Fees," Review of Law & Economics, De Gruyter, vol. 2(3), pages 363-370, October.
    • Handle: RePEc:bpj:rlecon:v:2:y:2006:i:3:n:2
    DOI: 10.2202/1555-5879.1045
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    Cited by:

    1. Guha, Brishti, 2016. "Malicious litigation," International Review of Law and Economics, Elsevier, vol. 47(C), pages 24-32.
    2. He, Leshui, 2020. "A theory of pre-filing settlement and patent assertion entities," International Journal of Industrial Organization, Elsevier, vol. 70(C).

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