The Feasibility of Litigation Markets
25 Pages Posted: 29 Jan 2014
Date Written: 2014
Abstract
This article attempts to link theoretical scholarship about litigation risk markets with a real-world examination of how such markets actually work in practice. Part I briefly describes the state of academic discourse on litigation finance, noting the questions scholars have asked and answered regarding the feasibility and desirability of a market in litigation risk. Part II then analyzes the practical workings of at least one litigation finance company — describing how an actual market mechanism evolved, what obstacles it faced, and where it fit within broader, albeit nascent, markets. Finally, Part III links the two projects, relying on practical experience to provide answers to the questions scholars have asked and raising new questions scholars had not previously considered.
Keywords: scholarship, litigation, procedural system
JEL Classification: K00, K40, K41, K49
Suggested Citation: Suggested Citation