Justice Delayed is Justice Denied: Strategic Settlements in Medical Malpractice Lawsuits

Delayed justice jeopardizes the function of a just and fair system, disturbing the balance of bargaining powers among litigants in negotiating settlement agreements. We empirically demonstrate that delayed justice brings about heterogeneous responses in the timing of a settlement: the hazard rate of settlement with compensation rises whereas the hazard rate of settlement without compensation does not. We elucidate the findings in a dynamic bargaining model of litigation and show all participating parties but the liable defendant is worse off as a result of delayed justice, explicating the legal maxim: justice delayed is justice denied.