? ?
entries friends calendar profile King Rat Previous Previous Next Next
King Rat
Private Life
Eco 200: injury suits

(group) A newspaper headline says, "Injury Suits Rise As Other Legal Work Dries Up." Use the concept of opportunity cost to explain what is happening. Would laws that severely restrict injury suits reduce the cost of hiring a lawyer to draw up a last will and testament?

To explain, I'll postulate three opportunities for lawyers that cover much of the domain of opportunities available: suing for breach of contract (other legal work), personal injury suits, and getting out of the legal profession. As the supply of breach of contract matters dries up, once less lucrative injury suits become marginally better than getting out of the legal profession (which entails large costs to learn something else). Other legal work may be better opportunity, but if there is little supply of them, the cost to obtain that work (i.e., marketing) goes up.

A law that severely restricted injury suits might lower the cost of hiring a lawyer to draw up a last will and testament. But I don't consider it too likely. It only changes the opportunity cost of one alternative. Vast numbers of lawyers might simply take up teaching at community colleges as the opportunity there is high.

1 comment or Leave a comment
faerieburst From: faerieburst Date: April 19th, 2005 03:54 am (UTC) (Link)
What about criminal defense and criminal prosecution....that's a huge chunk of lawyering.

Plus, transactional law isn't drying up. And IP law is expanding rapidly, as is international law.

And this has nothing to do with economics.

PI attorneys wouldn't go into trust and estate law if they couldn't do PI, it isn't the natural progression field.

The end.

1 comment or Leave a comment