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http://ssrn.com/abstract=1162268
 
 

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Tort Law and Probabilistic Litigation: How to Apply Multipliers to Address the Problem of Negative Value Suits


Jef De Mot


Ghent University - Faculty of Law

Ben Depoorter


University of California Hastings College of Law; Ghent University - Center for Advanced Studies in Law & Economics

January 4, 2010

International Review of Law and Economics, Vol. 30, No. 1, 2010

Abstract:     
This Article advances a proposal that brings to life valuable lawsuits that litigation costs currently discourage. Our proposal converts claims with negative expected values into positive expected value claims by implementing a novel system involving flexible conditional multipliers. Our proposal has two components. First, under the proposed system a plaintiff is allowed to select a damage multiplier that determines the amount of damages the plaintiff will receive if the litigation is successful. Second, courts select cases for litigation randomly with a probability inverse to the multiplier the plaintiff selected.

Number of Pages in PDF File: 25

Keywords: litigation, procedure, tort law

JEL Classification: D72, F02, K34

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Date posted: July 17, 2008 ; Last revised: November 12, 2012

Suggested Citation

De Mot, Jef and Depoorter, Ben, Tort Law and Probabilistic Litigation: How to Apply Multipliers to Address the Problem of Negative Value Suits (January 4, 2010). International Review of Law and Economics, Vol. 30, No. 1, 2010. Available at SSRN: http://ssrn.com/abstract=1162268

Contact Information

Jef De Mot
Ghent University - Faculty of Law ( email )
Universiteitstraat 4
Ghent, B-9000
Belgium
Ben Depoorter (Contact Author)
University of California Hastings College of Law ( email )
200 McAllister Street
San Francisco, CA 94102
United States

Ghent University - Center for Advanced Studies in Law & Economics ( email )
Ghent Univ. Law School
Universiteitstraat 4
Gent, 9000
Belgium
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