Litigation costs could be conceived as a bribe to parties to reach a contractual agreement settling their dispute. The question of what effect fee-shifting rules might have on the rate of settlements in lawsuits is examined.
John J. Donohue III,
The Effects of Fee Shifting on the Settlement Rate: Theoretical Observations on Costs, Conflicts, and Contingency Fees,
54 Law and Contemporary Problems
Available at: http://scholarship.law.duke.edu/lcp/vol54/iss3/10