Litigate or Settle?
Litigation is risky business. The costs and time involved are significant and the eventual outcome is inherently uncertain. All too often legal disputes end up in protracted litigation with only losers at the end. On the other hand, litigation can be a useful tool. An irrational fear of its related costs may cause a company to leave value on the table.
Lawyers will give you an opinion on the legal merits of a case, but litigation advice can be ambiguous. If your lawyer tells you that you have a ‘good chance of winning in court’, what does that actually mean? How do you ensure that emotions and cognitive biases do not get the better of you when dealing with complex and often emotional legal disputes?
Legal technology can be a great help and, in the near future, is likely to become indispensable in making litigation decisions and avoiding costly mistakes. At Redbreast we have developed software and analytical tools that enable us to make our investment decisions as objectively as possible. Our software allows us to compare our case evaluations to actual outcomes, improving the quality of our investment decisions over time.
With a view to potentially making our software available for wider use in the future, we have launched a pilot in which we make our litigation funding expertise and software available on a consultancy basis: Redbreast Analysis. Redbreast Analysis enables you to make better litigation decisions and, crucially, to identify early-stage settlements that are preferable to litigation and thus avoid the costs of litigation completely.
Together with you and your lawyer or in-house counsel, we map the relevant issues of the case, the expected costs of litigation, the chances of success, and the risks involved. Based on this information, our algorithms calculate whether it makes sense to invest in litigation and determine what would be a rational settlement at any relevant stage of litigation. The process makes use of relevant data sets available for similar cases.
If you would like us help you review threatened or ongoing litigation or to determine your settlement threshold, please contact Rein Philips on +31 (0)20 891 2100 or at email@example.com.
Together with Radboud University Nijmegen’s Centre for Professional Legal Education (CPO), Redbreast also provides courses on using decision analysis in litigation and settlement negotiations.
Through a variety of case studies and real-time experiments, the course introduces the participants to decision theory and its relevance in the efficient resolution of legal disputes. The course culminates in a negotiation game, in which the participants apply their newly acquired skills to a fictional legal dispute that is tailored as much as possible to the participants’ actual field of work.
If you are interested in taking part in the next course or would like to learn more about the possibilities for organising a course specifically for your law firm or company, please contact Ricky van Oers of CPO at firstname.lastname@example.org or Cezanne Santman of Redbreast at email@example.com.