A Theoretical and Empirical Study of Forum Shopping in Diversity Cases

26 Pages Posted: 22 Jan 2012 Last revised: 19 Aug 2014

See all articles by Neel U. Sukhatme

Neel U. Sukhatme

Georgetown University Law Center; Georgetown McCourt School of Public Policy

Date Written: August 18, 2014

Abstract

An underappreciated consequence of diversity jurisdiction is that it can promote forum shopping within the federal court system. I develop a general model of forum shopping, which I then test with 532,097 federal diversity cases terminating between 1988 and 2011. Confirming a testable prediction of my model, I find that parties (particularly corporations) who litigate outside of their home state settle cases more often than parties who litigate at home. My results are robust under a variety of specifications, including ones with fixed effects for plaintiff home state, years of suit filing and termination, forum, and case type.

Keywords: Forum selection, suit, settlement, false patent marking, civil procedure

Suggested Citation

Sukhatme, Neel U., A Theoretical and Empirical Study of Forum Shopping in Diversity Cases (August 18, 2014). Available at SSRN: https://ssrn.com/abstract=1989250 or http://dx.doi.org/10.2139/ssrn.1989250

Neel U. Sukhatme (Contact Author)

Georgetown University Law Center ( email )

600 New Jersey Avenue, NW
Washington, DC 20001
United States

Georgetown McCourt School of Public Policy ( email )

Old North, Suite 100
37th & O Streets NW
Washington, DC 20057
United States

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