In other words the plaintiff will pay most of the

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In other words, the plaintiff will pay most of the defendant’s legal fees QQQ: Settlement Model ( 셤에 나온다 하심 ) 10.13 Assume that the pf demands $1000 to settle, the df offers $600 and the jury awards find more resources at oneclass.com
$900 at trail. Extend the definition of “winner” and “loser” to this case for purposes of applying the rule “loser pays all”. . 10.14 Recall that, according to one definition, a nuisance suit has no merit in the sense
that the pf’s expected judgment is zero. Will there be more nuisance suits under t he rule of “each pays his own” or “loser pays all”? . 10.15 The parties to a suit may dispute the fact and extent of liability. Disputes over
whether the df was liable often have no scope for compromise, whereas disputes over the magnitude of damages have scope for compromise. Explain why the rule of “loser pays all” may cause parties to resolve most disputes over the extent of liability but not the fact of liability.
10.16 Assume that both parties to a legal dispute are averse to the risk of losing at trail. Would risk- averse parties be more inclined to settle out of court under a rule of “each pays his own” or “loser pays all”? - Risk-averse parties would be more inclined to settle out of court under a rule of “loser pays all” since their risk of having to pay the other party’s legal fees upon losing would make them more willing to just settle, which incurs less transaction costs and is less risky find more resources at oneclass.com
10.17 Suppose “lower pays all” is more efficient than “each pays his own”. In a jurisdiction
that follows “each pays his own”, the Coase Theorem would predict that the two parties would sign a contract requiring the loser to reimburse the winner, thus adopting the more

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