X hits on this document

84 views

0 shares

0 downloads

0 comments

27 / 40

  • -

    25 -

Bayer’s Ability to Credibly Litigate All Other Cases was a Prerequisite to this Strategy

Finally, Bayer’s preparation for extensive litigation made credible their threat to litigate every non-rhabdomyolysis case and

every rhabdomyolysis case for which

scheduled

amount.

Defense

verdicts

plaintiffs at several

did not accept the high-profile early

trials

(including

some

that

involved

plaintiffs

with

rhabdomyolysis)

reinforced

the

perception

of

the

strength

of

Bayer’s

position

and

their

willingness

to risk Bayer’s

trials even in historically plaintiff-friendly jurisdictions. retention of outside trial lawyers and preparations for training

the necessary number of additional lawyers also signaled to plaintiffs that Bayer was prepared and able to defend these cases at trial without

settling. discovery defendant

In some other mass torts, the sheer number of claims, requests, and trial dates led to the perception that a given was unable to credibly defend the number of cases and was

overwhelmed.

39

GENERAL PUBLIC WELFARE IMPLICATIONS OF BAYER’S STRATEGY

Effective commitment strategies of this kind have mixed effects on

public

welfare.

little

incentive

They may reduce delay costs because plaintiffs have to engage in posturing about the amounts for which they

will settle (Spier 2003).

As a result, cases that would otherwise

settle chance

only on the eve of trial settle

of

getting

a

better

offer.

All

earlier because there is things being equal, this

little reduces

both wasteful transaction costs of litigation (e.g., hiring lawyers posture about reservation prices) and the costs of delay (the harm caused by delaying compensation to the injured).

to

However, an effective commitment strategy may lead a defendant to

take a reduce

more aggressive posture and take more cases to trial.

This may

plaintiff

welfare

and

lead

to

increased

litigation

costs.

As

one

____________ Interview with Gary McConnell, 2007. 39

Document info
Document views84
Page views84
Page last viewedSat Dec 03 00:50:49 UTC 2016
Pages40
Paragraphs2488
Words11844

Comments