Litigation Finance and the Problem of Frivolous Litigation

The Effect of Frivolous Lawsuits on the Settlement of Litigation

It is commonly alleged that a substantial proportion of lawsuits are frivolous and are filed only for their nuisance value. This paper models settlement bargaining in the presence of frivolous suits as a game of asymmetric information, where the plaintiff knows the true merits of his claim, and the defendant does not, apart from any inferences he can draw from the fact of suit. When there is fr...

Lawsuit Abandonment Options in Possibly Frivolous Litigation Games

Standards , Testing , and School Finance Litigation

incomplete. I’d ask that you not circulate it, so as to limit the scope of my potential embarrassment. I apologize for not yet including full citations, but I promise I’m not making it (all) up. I also expect to have a more complete draft by the time of the conference, which I’ll happily share with anyone interested. In the meantime, this draft is far enough along for you to follow the basic pl...

Does School Finance Litigation Cause Taxpayer

An influential theory argues that court-ordered school finance equalization undermines support for public schools. Residents of wealthy school districts who cannot keep their tax revenues for their own school districts may vote to limit school funding altogether. Proponents of this theory point to Serrano v. Priest, a 1977 decision of the California Supreme Court that mandated equalization of s...

Directors’ Insurance and the Expected Cost of Frivolous Litigation when Cross‐Listing into the U.S

We study the expected liability cost of cross‐listing into the United States by examining the change in the structure of a Canadian firm’s directors’ and officers’ liability insurance contract (D&O insurance) before and after cross‐listing. All else being equal, we show that neither the likelihood of having insurance nor the D&O liability insurance coverage change following cross‐list...