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How do you resolve the dispute? (Would You enio terms?)? What outcomes are expected under your solution? Consider the following legal process example (8) (it
How do you resolve the dispute? (Would You enio terms?)? What outcomes are expected under your solution? Consider the following legal process example (8) (it is adapted from the Polinsky example we covered In lecture) Amount In disputes $10,000 Both parties believe the probability that the plaintiff will prevail at trial is: 50% when the plaintiff hires a regular lawyer for $3,000 100% when the plaintiff hires a top lawyer for 9,000 Defendant's litigation costs $5,000 Assume that neither party pays any legal expenses if an out-of-court settlement is reached. First consider the usual American rule where each party pays its own legal fees. (@) If the case goes to trial, will the plaintiff hire a top lawyer or not? (b) Given your answer to (a), calculate i wach party's threat point during pre-trial negotiations (which is Its norcopy seawolf if the case goes to trial) trial settlement is reached parties agreed to divide the gains
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