If so ... Now, more than ever, you need a rigorous approach for dealing with and quantifying the uncertainties inherent in litigation. You need a logical method for arriving at conclusions about case value that properly reflect your analysis of the underlying issues and evidence. And that method must work as well early in a dispute as later. You need Litigation Risk Analysis.
Why is it so difficult to properly value a lawsuit even one of just moderate complexity? First, there are so many issues to consider whose results are highly uncertain: which witnesses will be believed, which evidence ruled inadmissible, which defenses allowed, which causes of action proven, which damages awarded? Realistically assessing the odds of litigation uncertainties is very tricky. And the earlier these issues need to be assessed, the greater the uncertainty and the tougher your task.
Second, although attorneys and claims managers are trained to identify and analyze each individual issue, few have been taught any rigorous, theoretically sound way to combine their judgments on all the uncertainties presented by a case. Thus they usually rely on a few back-of-the-envelope calculations and a lot of "gut feel."
While such an approach may be adequate for a single, small-dollar case, it is not sufficient for companies facing either a very large volume of small-dollar cases or a handful of very large-dollar lawsuits. In either of these situations, overvaluing even by just 10% can result in your client paying millions more than necessary in settlements. Undervaluing can lead you to miss out on good settlements and thus cause your pretrial and trial costs to skyrocket unnecessarily.
To meet these challenges a systematic approach to litigation decision-making has been developed and refined by Marc B. Victor, Esq. More than 30 years ago, he pioneered the application of decision-tree analysis to law. Since then it has been successfully implemented in thousands of cases involving breach of contract, products liability, personal injury, medical malpractice, insurance coverage, toxic torts, environmental cleanup, employment discrimination, intellectual property, antitrust, securities fraud, consumer fraud, corporate bankruptcy, foreign expropriation, and other disputes.
Although Litigation Risk Analysis relies strictly on the professional judgment of attorneys and claims managers, it enhances their intuition, expertise and traditional thought processes, and offers a sound, proven methodology for placing a dollar value on actual and potential legal problems.
This approach has wide application from pre-constructed software models for quickly evaluating small claims, to full risk analyses of the largest and most complex commercial disputes. And the result is always a comprehensive understanding of the risks of a lawsuit expressed in the business language of probabilities and potential outcomes exactly the information you and your clients really need.
Two Types of Cases ......
Two Types of Litigation Risk Analysis Solutions
When there is a lot at stake in a lawsuit, a complete risk analysis must be done from scratch. This is the only way to ensure that all the important issues are identified, the correct relationships between the issues are captured, the proper decision tree is constructed, and the correct quantitative conclusions are drawn for litigation and settlement decisions.
Most insurers and many corporations find that the bulk of their cases fall into a handful of categories, and that within any one category most of the claims raise similar issues. As a result, models that already capture these key liability, damages and comparative fault issues in correctly structured and programmed decision trees allow for Litigation Risk Analyses to be performed in minutes, with little training. This frees claims managers and counsel to concentrate on the quality of their evaluation of each underlying issue, while leaving it to the model to "roll it all together" correctly and calculate the overall value of the claim.
For each of these two situations, Litigation Risk Analysis, Inc. has developed specific training courses, software applications, and consulting services. For more information, click on the choices at the top of your screen.
P. O. Box 1085 Kenwood, CA 95452
phone: (707) 833-1093 fax: (707) 833-0084
Litigation Risk Analysis, Inc.
Litigation Risk Analysis is a trademark of Litigation Risk Analysis, Inc.