Legal disputes that fail to settle have a tell-tale economic fingerprint. The LSF Index is that fingerprint.
Hong Kong (PRWEB)
September 19, 2017
SettlementAnalytics™ has today announced the launch of a groundbreaking new legal metric and advisory service designed to assist in the early detection of lawsuits that will fail to resolve in a settlement agreement. Based on an advanced legal-economic model of dispute, the Litigation Settlement Failure Index™ (LSF Index™) is the world’s first quantitative legal measurement to indicate the likelihood of a lawsuit proceeding all the way to trial and adjudication.
Using the LSF Index and related legal-analytic technologies, SettlementAnalytics now offers settlement failure risk analysis and prediction services (SFRAP). For the first time, corporate litigants and law firms have a rigorous and quantitative early-warning indicator of settlement failures.
The Fingerprint of Settlement Failure
The majority of legal disputes end in settlement. So when negotiations fail and cases proceed to a court or arbitral hearing, it can often come as a surprise, and one that is not always welcome. However, research shows there is a tell-tale fingerprint of impending settlement failure embedded in the economic structure of trial-prone legal conflicts and the prospects that confront each litigant. The LSF Index is that fingerprint.
“Not all lawsuits are created equal. In order to reach a court and obtain a judgment, disputes must first resist the economic forces that ordinarily encourage a negotiated solution. This filtering process imparts an economic signature to the subset of disputes which can be expected to end up in a courtroom,” said Robert Parnell, president and CEO of SettlementAnalytics. “By analyzing the economic structure of legal conflicts we can extract the implied probability of settlement failure.”
Trial Selection Theory
The Index is based on ‘trial selection theory’, which is the branch of legal-economics that seeks to explain why some legal disputes fail to settle and how the selection process affects the resulting trial rate and plaintiff win rate. Two separate and competing theories of trial selection have been at the center of academic attention over the past…