# Lecture Notes- Legal Procedure Nov 4 2009

Lecture - LEGAL PROCEDURE (November 4th 2009)

- Recovery t compulsory discovery of facts

- Gain for plaintiff can be money (compensation)

- Gain of justice = highly important t sometimes may be even more valued than monetary claims

- dZ[Àoµ]vreadjusting/reinforcing previous rules

Slide 5 t Wo]v](([]]}vZµo

- ^}uo]v](([iµvi}ÇZµ]vP}~l}v(]o]vP(}oÁµ]t not serious

Slide 6 t Expected Value of a Legal Claim

- Decision chain

- 5 decision points of filing/not filing, settling/not settle, winning/losing

- Essentially of game theory (extensive form)

- ^}oµ]}vWZvvÁ}llÁ~ZP]vv]vPÁ}v[ÁZZî]]}v

are worth, need to start at the end); find the expected values of each t move backwards

- More reward t take greater probability case

Slide 8 t Effect of Fees (2)

- Port Colborne = Lake Eerie

o A t possible awards

o P t probability of winning

- Canadian cost rule

o 2/3 of legal costs paid by loser

o >}Çîlï}(Á]vv[}

- If expected value is positive t SUE

- If probability is uncertain, find break even probability (use equation)

o F=g=0 Æ American cost rule applied, break even probability = .15

- Which cost rule encourages risky claims? AMERICAN b/c the plaintiff is not at risk of paying their

own lawyer and the opponents lawyer

Slide 9 t Effect of Fees (3)

- When costs are award, not ALL costs are awarded (only a portion) t 2/3

- No-way-certain t no reallocation of costs between parties (f=g=0)

- Certain t ALWAYS pay your lawyer

- No-way contingent % t only pay your lawyer if you win

o v[µZuÆÀoµµ]}vWt pA(1-h) t (1-p)0

o Lawyer gets a percentage of winnings

o Client would want to sue when p and A are positive (expected value has to be greater

than zero)

o Client may have opportunity cost (in reality, should be added to claims)

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## Document Summary

Gain for plaintiff can be money (compensation) Gain of justice = highly important j sometimes may be even more valued than monetary claims. Slide 6 j expected value of a legal claim. 5 decision points of filing/not filing, settling/not settle, winning/losing. zlz are worth, need to start at the end); find the expected values of each j move backwards. More reward j take greater probability case. Port colborne = lake eerie: a j possible awards, p j probability of winning. Canadian cost rule: 2/3 of legal costs paid by loser, zyz llz. If probability is uncertain, find break even probability (use equation: f=g=0 american cost rule applied, break even probability = . 15. American b/c the plaintiff is not at risk of paying their own lawyer and the opponents lawyer. When costs are award, not all costs are awarded (only a portion) j 2/3. No-way-certain j no reallocation of costs between parties (f=g=0)