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Sunday, November 8, 2009
 
 
VIDEO
What Do We Know about Contingency Fees?
 
 

Critics of the U.S. tort system often argue that the contingency fee system provides incentives for excessive litigation.  Many of the criticisms and suggested policy reforms are based, however, on anecdotal evidence, rather than on systematic study of the contingency fee system. While capping contingency fees is still one of the most favored reforms, research by Alexander Tabarrok and Eric Helland suggests that rather than solving the "crisis," the caps increase the number of frivolous lawsuits.  Further research by Jonathan Klick and Helland suggests that in federal class action suits judges in busier districts tend to allow higher attorney fees in an attempt to expedite the resolution of the case.  Theodore Eisenberg and Lester Brickman will respond.

 
 
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