The Timing of Out-of-Court Settlements

Fournier, Gary M.; Zuehlke, Thomas W.

doi:10.2307/2555928

Cited by 55 publications

(30 citation statements)

References 13 publications

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“…To study case duration to settlement we use survival analysis (see, e.g., Fournier and Zuehlke 1996, Kessler 1996, Eisenberg and Farber 1997, Spurr 1997, Boyd and Hoffman 2012, Fenn and Rickman 2013, Ayuso et al 2015. Unlike standard regression methods such as ordinary least squares estimation, survival analysis allows us to, first, address the issue of skewed distribution of duration times (see Figure 1); second, mitigate sample selection bias by incorporating pending cases into the estimation; and, third, model the effect of time-varying covariates such as, for example, our indicator variables for consecutive court sessions.…”

Section: Empirical Approachmentioning

confidence: 99%

“…Studies of the timing of settlement are particularly scarce in the context of civil-law legal systems (see, e.g., Deffains and Doriat 1999, Westeus 2014, Ayuso et al 2015 where the procedural aspects of litigation, and thus the set of rules and incentives shaping settlement decisions, can differ notably from those in common-law legal systems (see, e.g., Kessler 1996, Fournier and Zuehlke 1996, Spurr 1997, Eisenberg and Farber 1997, Boyd and Hoffman 2012, Fenn and Rickmann 2013.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Litigation and the timing of settlement: evidence from commercial disputes

Grajzl

Zajc

2016

Eur J Law Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Although an overwhelming proportion of all legal disputes end in settlement, the determinants of the timing of settlement remain empirically underexplored. We draw on a novel dataset on the duration of commercial disputes in Slovenia to study how the timing of settlement is shaped by the stages and features of the litigation process. Using competing risk regression analysis, we find that events such as court-annexed mediation and the first court session, which enable the disputing parties to refine their respective expectations about the case outcome, in general reduce case duration to settlement. The magnitude of the respective effects, however, varies with time. Completion of subsequent court sessions, in contrast, does not affect the time to settlement. Judicial workload affects the timing of settlement indirectly, via the effect on the timing of the first court session. We also examine the effect of other case and party characteristics. Terms of use: Documents inJEL-Code: K410, K490, D020.

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Section: Empirical Approachmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Litigation and the timing of settlement: evidence from commercial disputes

Grajzl

Zajc

2016

Eur J Law Econ

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“…17 The plaintiff makes all of the offers. 18 In each period, t (with t ≤ T ), the plaintiff makes a offer, s t , which the defendant may either accept or reject. If she rejects, the game continues with the plaintiff making another offer in the following period.…”

Section: Theorymentioning

confidence: 99%

“…Therefore, assuming time-to-trial is exogenous to the litigants' decision seems to be reasonable. 18 This assumption puts the whole bargaining power on the plaintiff's side, although generally the defendant may make counter offers. This assumption is made to avoid the multiplicity of equilibria associated with updating of beliefs.…”

Section: Theorymentioning

confidence: 99%

The Timing of Out-of-Court Settlements Revisited: Theory and Cross-Sectional Evidence from Texas Since 1988

Zhou

2011

SSRN Journal

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“…11 See, for example, Danzon and Lillard (1983), Farber and White (1991), Kessler et al (1996), Fournier and Zuehlke (1996), Fenn and Rickman (1999), Viscusi (1988) and the survey by Kessler and Rubinfeld (2004). Sieg (2000) and Watanabe (2005) present structural econometric models of settlement.…”

mentioning

confidence: 99%