Resolving Legal Disputes in Workers' Compensation: Evidence from Florida
Disputes over work-related injuries are not uncommon, despite the no-fault intent behind the worker's compensation system. Moreover, the proportion of disputed cases has increased substantially in recent years. Although disputes are usually resolved by the determination of an administrative judge, rather than by jury trial as in much civil litigation, the dispute resolution process can be fruitfully analyzed using economic models prevalent in the empirical literature on civil trials. In this paper, we draw on theoretical models of settlement choice in which parties' expectations of court awards affect subsequent litigation.
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