Subrogation and its consequences for tort litigation

Stephen Spurr

International Review of Law and Economics, 2021, vol. 67, issue C

Abstract: In the U.S. tort recoveries of personal injury victims are now fully subject to subrogation claims by public and private health insurers who have previously covered the victim's health care expenses. We use an extensive-form game to model decisions that must be made by insurers when their insured party has been injured and sues for damages. If the insurer decides to join the lawsuit, it must decide how much, if anything, it will contribute to the legal expenses of the plaintiff.

Keywords: Subrogation; Contingent fee; American rule; English rule (search for similar items in EconPapers)
JEL-codes: C72 K40 K41 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:67:y:2021:i:c:s0144818821000260

DOI: 10.1016/j.irle.2021.106002

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