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Marie Gryphon cited for work on loser pays

In an article in The Economist, adjunct fellow with the Manhattan Institute's Center for Legal Policy, Marie Gryphon, is cited for her work exploring the likely effects of adopting a loser-pays rule for attorneys' fees. In a loser-pays system, the losing party is responsible for reimbursing the winning party's legal expenses, including attorneys' fees.

The Economist piece examined loser-pays rules as implemented in their respective customized forms in Texas, Alaska and Florida (1980-1985) and also discussed medical-malpractice caps on noneconomic damages, the central theme of Ted Frank's most recent debate with Cato's Shirley Svorny.

The article cites Marie's advocacy for the development of a litigation insurance system:

Marie Gryphon of the Manhattan Institute, a centre-right think-tank, who is author of a loser-pays proposal, says that Texas got "much less than half a loaf", and that Florida was spooked too quickly. She argues that loser-pays countries need legal insurance, which can be bought (for example) in England for just £100-200 ($150-300) after an alleged loss, but before a suit is filed. Lawyers can advance the premiums and add them to their bills. In other countries, such as Germany, many households carry standing legal insurance with a small monthly premium. Ms Gryphon argues that in such a mature loser-pays market more small-value but high-merit cases would be brought, while both small "nuisance" suits and big "lottery" suits would be less attractive to lawyers.

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Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.