"Third Party Contingency" contracts in settlement and litigation

Arbeitspapier

We present, for the first time, a model of recent institutional developments in litigation funding across several European jurisdictions. Recognizing the financing constraints that British cost rules may impose on litigants, these new contractual arrangements combine contingency fees with third party cover for cost in the event of losing the case: we call these ?Third Party Contingency? (TPC) contracts. Signing a TPC contract can make filing a suit credible and may increase settlement amounts. This does not, however, increase the likelihood of going to trial, since TPC contracts are only of mutual benefit to the plaintiff and the third party when the case settles out of court. We also find that the mere availability of TPCs may generate the above strategic effect.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CSLE Discussion Paper ; No. 2002-11

Classification and Topics

• Classification: Wirtschaft ; Insurance; Insurance Companies; Actuarial Studies ; Litigation Process
• Subject: Contingent fees ; British cost allocation rule ; Legal Cost Insurance ; strategic moves ; Gerichtliche Prozesskosten ; Rechtsschutzversicherung ; Erfolgsbeteiligung ; Vertragstheorie ; Verhandlungstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kirstein, Roland ; Rickman, Neil
• Event: Veröffentlichung
• (who): Universität des Saarlandes, Center for the Study of Law and Economics (CSLE)
• (where): Saarbrücken
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/23125
• Last update: 2025-03-10T11:42:39+0100