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Document Type

Article

Abstract

Decisions made by litigants are often not beneficial to society. A rule governing fee allocation in tort cases should encourage meritorious suits and discourage frivolous suits. America is one of the only countries in the world that does not use a loser-pays rule to assign legal costs. Employing a loser-pays rule could make the legal system more efficient and more equitable. The effect of a loser-pays rule is analyzed with economic theory and empirical evidence. Possible limitations of the rule are also considered. A carefully applied system of loser-pays may positively affect the U.S. legal system.

Publication Date

Spring 2005

Journal Title

Major Themes in Economics

Volume

7

Issue

1

First Page

31

Last Page

45

Copyright

©2005 by Major Themes in Economics

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Language

EN

File Format

application/pdf

Included in

Economics Commons

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