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Series

Litigation

Boston University School of Law

Settlement

Publication Year

Articles 1 - 2 of 2

Full-Text Articles in Law

Toward A Regulatory Framework For Third-Party Funding Of Litigation, Keith Hylton Jun 2013

Toward A Regulatory Framework For Third-Party Funding Of Litigation, Keith Hylton

Faculty Scholarship

Because third-party funding and sales of legal rights are equivalent in terms of their economics, I examine arrangements in which third-party sales of legal rights are permitted today – waiver, subrogation, and settlement agreements. The existing arrangements provide valuable lessons for the appropriate regulatory approach to third-party financing of litigation.


Welfare Implications Of Costly Litigation Under Strict Liability, Keith Hylton Jan 2002

Welfare Implications Of Costly Litigation Under Strict Liability, Keith Hylton

Faculty Scholarship

This paper examines a model of strict liability with costly litigation, and presents the conditions under which: (1) potential injurers take optimal precautions, (2) increasing litigation costs enhance precaution and social welfare, (3) the optimal level of liability exceeds the compensatory level, and (4) increasing the rate of settlement increases social welfare. The results have implications for controversies surrounding optimal damage awards (e.g., punitive versus compensatory), fee shifting, and the desirability of settlement.