To litigate or not to litigate? The impacts of third-party financing on litigation

Deffains, Bruno; Desrieux, Claudine

doi:10.1016/j.irle.2014.08.005

Cited by 12 publications

(3 citation statements)

References 24 publications

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“…Article context Representation Source "Litigation-only" policy of some organizations Nonconstruction Lit_Only Armstrong (2008), Bronsteen (2009), Carver and Vondra (1994), Hylton and Lin (2012) frivolous and noncontractual claims Nonconstruction Friv_Non_Cont Freidman and Wickelgren (2008), Guthrie (2000) Third-party litigation funding is available Nonconstruction TPFund Antill and Grenadier (2020), Deffains and Desrieux (2015), Spier and Prescott (2019) Decision-makers without authority Nonconstruction DMWAuth Fiss (1984) Influence of emotions Nonconstruction Emotions Armstrong (2008), Bronsteen et al (2008), Carver and Vondra (1994), Guthrie (1999), Larrick and Boles (1995), Macaulay (1963), Rachlinski (1996) Power imbalance between parties Nonconstruction Power_Imb Bronsteen (2009), Fiss (1984)…”

Section: Causes (Trigger)mentioning

confidence: 99%

Identifying focus areas to decode the decision to litigate contractual disputes in construction

Jagannathan

Delhi

2021

ECAM

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PurposeStrong and independent judiciary symbolizes transparency and impartiality in the dispute resolution process. However, litigation is often time-consuming and affects the working relationship between the disputants. In the construction context, where projects typically have a short life span of three to four years, dispute resolution through litigation induces unaffordable process delays. Despite the inherent challenges associated with litigation, it is observed that disputing parties resort to litigation. This behavior, called the litigation dilemma, ostensibly appears counterintuitive to rational decision-making.Design/methodology/approachThe study identifies 35 “decision to litigate” (DTL)-triggers from a review of the literature and court cases followed by expert interviews and groups them into thematic research domains using Exploratory Factor Analysis (EFA) followed by Confirmatory Factor Analysis (CFA).FindingsDTL studies in construction stands benefited through interdisciplinary research. “Presumptuous decision-making,” “construction project characteristics,” “milieu influence,” “interest in amicable resolution,” “positional focus” and “opportunism” are the six focus areas to decode the DTL in construction.Research limitations/implicationsThe study identifies factors that consolidate the knowledge from various fields with the substantive experience of construction professionals from across the world to help understand the dynamics behind the DTL in the context of contract-linked disputes in construction.Originality/valueThe findings from the domains of law, behavior, sociology and economics can help understand the above dilemma in the context of contractual disputes in construction. However, studies that explore the “decision to litigate” (DTL) contractual disputes in construction are limited, providing a vast scope for further research. The current study addresses a part of this gap.

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Section: Causes (Trigger)mentioning

confidence: 99%

Identifying focus areas to decode the decision to litigate contractual disputes in construction

Jagannathan

Delhi

2021

ECAM

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“…6 Avraham and Wickelgren (2014) constructed a model in which a consumer legal funding agreement could be used as evidence to signal that the case is strong and demonstrated that such signaling can lead to lower interest rates. Deffains and Desrieux (2015) modeled the effect of commercial litigation funding on lawsuit outcomes and found that such funding may decrease settlements in some scenarios and may increase claims in which the plaintiff did not suffer the alleged injury. Chen (2015) used similar data as those used by Abrams and Chen (2013).…”

Section: Related Literaturementioning

confidence: 99%

Consumer Litigation Funding and Medical Malpractice Litigation: Examining the Effect of Rancman v. Interim Settlement Funding Corporation

Xiao

2017

J Empirical Legal Studies

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Consumer litigation funding, a growing industry in the United States, is an alternative credit source for cash‐strapped tort plaintiffs. Financiers give plaintiffs nonrecourse loans that are premised on lawsuit outcomes. This article is the first to empirically examine the effect of consumer litigation funding. Specifically, I explore the impact of nonrecourse loans on medical malpractice litigation outcomes by exploiting the variation in timing and geography from two Ohio policy changes: the Ohio Supreme Court's 2003 ban of funding in Rancman v. Interim Settlement Funding Corporation and the state's subsequent legislative legalization of funding in 2008. Using closed‐claim data from the National Practitioner Data Bank, I find evidence that the availability of funding increases claim payment and claim duration.

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“…Our paper is also related to the small theoretical literature on third-party financing of litigation (Avraham and Wickelgren, 2014;Daughety and Reinganum, 2014;Deffains and Desrieux, forthcoming; Demougin and Maultzsch, 2014;Hylton, 2012;Spier and Prescott, 2015). These previous studies are focused on the effects of third-party plaintiff lending on bargaining impasse.…”

Section: Introductionmentioning

confidence: 98%

Financially-Constrained Lawyers

Landeo

Nikitin²

2015

SSRN Journal

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To litigate or not to litigate? The impacts of third-party financing on litigation

Cited by 12 publications

References 24 publications

Identifying focus areas to decode the decision to litigate contractual disputes in construction

Identifying focus areas to decode the decision to litigate contractual disputes in construction

Consumer Litigation Funding and Medical Malpractice Litigation: Examining the Effect of Rancman v. Interim Settlement Funding Corporation

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