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• W3121855829 abstract "In this Article, we focus on an important problem involving mass-accident cases that was highlighted by the Deepwater Horizon litigation: overuse of courts to enforce contribution claims. These claims seek to shift incurred or expected liability and damages between the business and governmental entities that participated in the activity that gave rise to the mass-accident risk. Participants in such ventures generally have the option to determine by contract beforehand whether to subject themselves to contribution claims and, if so, whether such claims will be resolved by a publicly funded court or by a privately funded process, such as arbitration. Because the parties prosecuting and defending against contribution claims can consume judicial resources largely free of charge, it is likely they will choose to litigate in court to a greater extent than is socially desirable. We consider whether courts can effectively realign the parties' incentives by charging them for the cost of using the judicial process. Taking account of the public good of judicial precedent-making, we advance a user-fee design that allows courts to waive the fee in whole or in part for contribution claims that present substantial questions of law. Analysis of the proposal's application is extended generally to commercial contract disputes. Our central conclusion is that an appropriately designed user fee can effectively abate the problem of overuse without adversely affecting the functioning of the civil liability system. I. INTKODUCTION 1920 A. Contribution Claims in the Deepwater Horizon Litigation 1921 B. Costs and Benefits of Contribution Claims 1922 C. User-Fee Proposal 1925 D. Related Literature 1926 E. Organization of the Article 1927 II. CONTRIBUTION CASES AND THE OVERUSE OF COURTS ....... 1928 A. The General Theory of Litigation Incentives 1928 B. Contribution Cases 1929 III. THE DELAY COSTS OF PUBLICLY SUBSIDIZED ADJUDICATION 1931 A. Direct Delay Costs 1932 1. Loss of Litigation Time Value 1932 2. Loss of Litigation Investment Incentive ..... 1934 B. Indirect Delay Costs 1937 IV. USER-FEE DESIGNANO SOCIAL CONSEQUENCES 1939 A. Design, Implementation, and Social Benefit 1940 B. Lost Social Benefit from Adjudicating Fewer Contribution Cases 1942 1. Deterrence 1942 2. Precedent Making 1944 V. APPLYING THE USER FEE TO COMMERCIAL CONTRACTS GENERALLY 1948 A. Extension to Commercial-Contract Cases 1948 B. Narrow Exception 1950 VI. CONCLUSION 1954 I. INTRODUCTION In this Article, we focus on an important problem with massaccident cases, a problem highlighted by the Deepwater Horizon litigation: overuse of courts to enforce contribution claims. These claims seek to allocate liability among the business and governmental entities that contractually participated in the risky venture.1 Joint and several liability with provision for contribution, for example, enables plaintiffs asserting primary claims to recover all proven damages from a single deep-pocket defendant, regardless of that defendant's own share of legal responsibility for the harm, and then authorizes the defendant to sue other joint venturers to recoup payments in excess of its proportionate share of liability. …" @default.
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• W3121855829 date "2011-11-01" @default.
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• W3121855829 title "Litigating BP's Contribution Claims in Publicly Subsidized Courts: Should Contracting Parties Pay Their Own Way?" @default.
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