NCJ Number
143590
Journal
Journal of Legal Studies Volume: 22 Issue: 1 Dated: (January 1993) Pages: 99-134
Date Published
1993
Length
36 pages
Annotation
This comparison of sequential and unitary trials in civil disputes concludes that a sequential trial, in which the liability and the damages are determined in separate proceedings, lowers the expected costs of litigation for both the plaintiff and defendant.
Abstract
The expected costs are lower for a sequential trial than for a unitary trial because the sequential trial holds out the prospect of avoiding litigation on subsequent issues if the defendant wins the current issue or the parties settle the remaining issues after the current one is decided. Consequently, a sequential trial increases the plaintiff's incentive to sue and increases the number of lawsuits. In addition, it reduces the likelihood that the parties will settle out of court by narrowing the range of mutually acceptable settlements. Hence, sequential decisionmaking may increase the aggregate cost of litigation even though it lowers the expected cost of litigating a particular dispute. However, these findings are subject to several important qualifications. Footnotes