IDEAS home Printed from https://ideas.repec.org/a/eee/irlaec/v67y2021ics0144818821000260.html
   My bibliography  Save this article

Subrogation and its consequences for tort litigation

Author

Listed:
  • Spurr, Stephen J.

Abstract

In the U.S. tort recoveries of personal injury victims are now fully subject to subrogation claims by public and private health insurers who have previously covered the victim's health care expenses. We use an extensive-form game to model decisions that must be made by insurers when their insured party has been injured and sues for damages. If the insurer decides to join the lawsuit, it must decide how much, if anything, it will contribute to the legal expenses of the plaintiff.

Suggested Citation

  • Spurr, Stephen J., 2021. "Subrogation and its consequences for tort litigation," International Review of Law and Economics, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:irlaec:v:67:y:2021:i:c:s0144818821000260
    DOI: 10.1016/j.irle.2021.106002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0144818821000260
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irle.2021.106002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Winand Emons, 2007. "Conditional versus contingent fees," Oxford Economic Papers, Oxford University Press, vol. 59(1), pages 89-101, January.
    2. David Schap & Andrew Feeley, 2008. "The Collateral Source Rule: Statutory Reform and Special Interests," Cato Journal, Cato Journal, Cato Institute, vol. 28(1), pages 83-99, Winter.
    3. Kenneth S. Reinker & David Rosenberg, 2007. "Unlimited Subrogation: Improving Medical Malpractice Liability by Allowing Insurers to Take Charge," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 261-289, June.
    4. Sykes, Alan O, 2001. "Subrogation and Insolvency," The Journal of Legal Studies, University of Chicago Press, vol. 30(2), pages 383-399, Part I Ju.
    5. A Mitchell Polinsky & Steven Shavell, 2018. "Subrogation and the Theory of Insurance When Suits Can Be Brought for Losses Suffered," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 34(4), pages 619-649.
    6. David Schap & Kayla Horan & Andrew Feeley, 2017. "Statutory Modification of the Collateral Source Rule," Working Papers 1710, College of the Holy Cross, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gomez, Fernando & Penalva, Jose, 2015. "Tort reform and the theory of coordinating tort and insurance," International Review of Law and Economics, Elsevier, vol. 43(C), pages 83-97.
    2. Landeo, Claudia M. & Nikitin, Maxim, 2018. "Financially-constrained lawyers: An economic theory of legal disputes," Games and Economic Behavior, Elsevier, vol. 109(C), pages 625-647.
    3. Kenneth S. Reinker & David Rosenberg, 2007. "Unlimited Subrogation: Improving Medical Malpractice Liability by Allowing Insurers to Take Charge," The Journal of Legal Studies, University of Chicago Press, vol. 36(S2), pages 261-289, June.
    4. Winand Emons & Nuno Garoupa, 2004. "The Economics of US-style Contingent Fees and UK-style Conditional Fees," Diskussionsschriften dp0407, Universitaet Bern, Departement Volkswirtschaft.
    5. Flóra Felső & Sander Onderstal & Jo Seldeslachts, 2022. "The Pricing Structure of Legal Services: Do Lawyers Offer What Clients Want?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 61(2), pages 123-148, September.
    6. Chopard, Bertrand & Cortade, Thomas & Langlais, Eric, 2010. "Trial and settlement negotiations between asymmetrically skilled parties," International Review of Law and Economics, Elsevier, vol. 30(1), pages 18-27, March.
    7. Emons, Winand & Fluet, Claude, 2016. "Why plaintiffs’ attorneys use contingent and defense attorneys fixed fee contracts," International Review of Law and Economics, Elsevier, vol. 47(C), pages 16-23.
    8. Bruno Deffains & Eric Langlais, 2011. "Informational externalities and settlements in mass tort litigations," European Journal of Law and Economics, Springer, vol. 32(2), pages 241-262, October.
    9. Lorenzo Sacconi, 2011. "The case against lawyers’ contingent fees and the misapplication of principal-agent models," European Journal of Law and Economics, Springer, vol. 32(2), pages 263-292, October.
    10. Stone, Michael P. & Miceli, Thomas J., 2012. "Optimal attorney advertising," International Review of Law and Economics, Elsevier, vol. 32(3), pages 329-338.
    11. A. Mitchell Polinsky & Steven Shavell, 2017. "Subrogation and the Theory of Insurance When Suits Can Be Brought for Losses Suffered," NBER Working Papers 23303, National Bureau of Economic Research, Inc.
    12. At, Christian & Gabuthy, Yannick, 2015. "Moral hazard and agency relationship in sequential litigation," International Review of Law and Economics, Elsevier, vol. 41(C), pages 86-90.
    13. Winand Emons, 2006. "Playing It Safe with Low Conditional Fees versus Being Insured by High Contingent Fees," American Law and Economics Review, American Law and Economics Association, vol. 8(1), pages 20-32.
    14. Winand Emons & Nuno Garoupa, 2006. "US-style contingent fees and UK-style conditional fees: agency problems and the supply of legal services," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(5), pages 379-385.
    15. Frank H. Stephen, 2013. "Lawyers, Markets and Regulation," Books, Edward Elgar Publishing, number 14803.
    16. Yannick Gabuthy & Eve-Angéline Lambert, 2018. "Legal Advertising and Frivolous Lawsuits," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 174(3), pages 570-593, September.
    17. Deffains, Bruno & Desrieux, Claudine, 2015. "To litigate or not to litigate? The impacts of third-party financing on litigation," International Review of Law and Economics, Elsevier, vol. 43(C), pages 178-189.
    18. Baik, Kyung Hwan & Kim, In-Gyu, 2007. "Contingent fees versus legal expenses insurance," International Review of Law and Economics, Elsevier, vol. 27(3), pages 351-361, September.
    19. Fernando Gomez-Pomar & Mireia Artigot-Golobardes, "undated". "Wer sollte die Kosten von Unfällen am Arbeitsplatz tragen? Die schwierige Koordination von Arbeiterunfallversicherung und Delikthaftung aus ökonomischer Sicht," German Working Papers in Law and Economics 2004-1-1105, Berkeley Electronic Press.
    20. Deffains, Bruno & Langlais, Eric, 2007. "Informational externalities and informational sharing in class action suits," MPRA Paper 4846, University Library of Munich, Germany.

    More about this item

    Keywords

    Subrogation; Contingent fee; American rule; English rule;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:irlaec:v:67:y:2021:i:c:s0144818821000260. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/irle .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.