Incentives against Settlement (2024)

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Incentives against Settlement

A candid defense attorney once described a medical malpractice case as anannuity, bearing interest above the prevailing rate. The longer a file is open,the longer the law firm can draw that interest. Every few months additionalcourt papers can be filed. Client reports need to be done on a regular basis.Each piece of paper and court appearance that the defense attorney cangenerate, or force the plaintiff's attorney to generate, results in substantialfees. This approach is usually described as being "tough" on the plaintiff.Being tough usually means forcing court appearances and motion practice ratherthan coming to agreement.Most malpractice lawsuits settle before a final jury verdict. Unlike attorneyswho defend criminals, malpractice defense attorneys have an incentive not tocooperate with the plaintiff's attorney in reaching a settlement. Cases areoften settled at the courthouse door because that is the longest the defensecan delay before running the risk of a trial. Defense attorneys are riskadverse; they would rather settle a case than run any substantial chance oflosing the case. This is related to the public relations aspects of litigation.A successful defense of a malpractice lawsuit is not news, but a $1 millionverdict will attract news coverage. A case that is settled is not lost andusually does not generate adverse publicity. From an earnings perspective, theideal defense case is one in which the defendant was negligent enough tojustify settling the case but careful enough to justify delaying thatsettlement to the bitter end. Incentives against Settlement (6) Incentives against Settlement (7) Incentives against Settlement (8) Incentives against Settlement (9) Incentives against Settlement (10)

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Incentives against Settlement (2024)
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