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Additional info for The law and economics of class actions in Europe : lessons from America

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The median attorney’s fee in cases ending through settlement was 110 per cent of 5 White (1988, pp. 10–11). Ibid. p. 14. 6 Columns Design XML Ltd / Job: Ramello_Law_and_Economics_Class_Actions / Division: 03Chapter3 /Pg. Position: 3 / Date: 13/1 JOBNAME: Ramello PAGE: 4 SESS: 6 OUTPUT: Tue Feb 28 11:47:52 2012 30 The law and economics of class actions in Europe the damages recovered by those named as plaintiffs (by the initiating attorneys) and hence those who were in principle injured. Acknowledging that I have also participated in class action suits that I considered well-justified, let me illustrate this point with details on three actions that were either poorly based in facts or (I am unable to distinguish) brought for purposes of blackmail.

Defendants certainly don’t need to have committed willful wrongdoing to be properly subject to this type of extra-compensatory damages. And, in contradistinction with some other types of punitive damages, there is every reason to allow, indeed to encourage, defendants to insure against this type of damages, thereby making them a part of the ordinary costs of doing business. 46 Becker said that, in criminal law, if one simply charged the criminal with the amount of his theft there would be high incentive on the thief to keep stealing – perfectly obvious.

To deter actions that might be illegal, but that might either escape the attention of law enforcement authorities, or be committed because the expectation of penalties administered by government agencies is insufficient, or to solve free-rider problems when no individual has a sufficient incentive to take corrective action that will benefit many fellow citizens. (2) Let us consider first the second of these explanations. Does deterrence from class action litigation actually work? S. antitrust law ought to be a formidable deterrent.

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