Abstract

http://ssrn.com/abstract=991696
 
 

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Tort Liability Litigation Costs for Commercial Claims


Joni Hersch


Vanderbilt University - Law School; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - College of Arts and Science - Department of Economics

W. Kip Viscusi


Vanderbilt University - Law School; National Bureau of Economic Research (NBER); Vanderbilt University - Department of Economics; Vanderbilt University - Owen Graduate School of Management; Vanderbilt University - Strategy and Business Economics

September 6, 2007

Vanderbilt Law and Economics Research Paper No. 07-16

Abstract:     
This paper analyzes tort liability litigation costs using the Texas Department of Insurance Commercial Liability Insurance Closed Claim database for the years 1988-2004. Insurer costs to defend claims in which a suit was filed average $35,000 per claim in 2004$, which corresponds to a share of 0.18 of total expenditures. Claims with higher stakes and complexity lead to greater reliance on outside counsel and less reliance on in-house counsel. Total transactions costs for each dollar received by claimants average $0.75 for all claims and $0.83 for claims in which the claimant retained an attorney and a suit was filed.

Number of Pages in PDF File: 59

Keywords: liability, insurance, torts, litigation costs, transactions costs

JEL Classification: K13, K41

working papers series


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Date posted: June 10, 2007 ; Last revised: November 27, 2012

Suggested Citation

Hersch, Joni and Viscusi, W. Kip, Tort Liability Litigation Costs for Commercial Claims (September 6, 2007). Vanderbilt Law and Economics Research Paper No. 07-16. Available at SSRN: http://ssrn.com/abstract=991696 or http://dx.doi.org/10.2139/ssrn.991696

Contact Information

Joni Hersch
Vanderbilt University - Law School ( email )
131 21st Avenue South
Nashville, TN 37203-1181
United States
615-343-7717 (Phone)
615-322-6631 (Fax)
HOME PAGE: http://law.vanderbilt.edu/go/phdlawecon
Vanderbilt University - Owen Graduate School of Management
401 21st Avenue South
Nashville, TN 37203
United States
Vanderbilt University - College of Arts and Science - Department of Economics
Box 1819 Station B
Nashville, TN 37235
United States
W. Kip Viscusi (Contact Author)
Vanderbilt University - Law School ( email )
131 21st Avenue South
Nashville, TN 37203-1181
United States
615-343-7715 (Phone)
615-322-5953 (Fax)
HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Vanderbilt University - Department of Economics
Box 1819 Station B
Nashville, TN 37235
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)
HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
Vanderbilt University - Owen Graduate School of Management
401 21st Avenue South
Nashville, TN 37203
United States
(615) 343-7715 (Phone)
(615) 343-5953 (Fax)
HOME PAGE: http://law.vanderbilt.edu/faculty/viscusi.htm
Vanderbilt University - Strategy and Business Economics ( email )
Nashville, TN 37203
United States

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References:  16
Citations:  8

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