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JAMS ADR Insights


How Third-Party Funders Change the Chemistry of Settlements

A plaintiff, plaintiff ’s attorney, a defendant, defendant’s attorney and a mediator walk into a mediation room. There is uncertainty, anxiety, stress and anticipation. Decisions must be made under conditions of uncertainty. What will happen at trial? Will we do better settling in mediation or at trial? What shapes our decision making under conditions of uncertainty? And how are our decisions impacted by the elephant that is not in the room, the plaintiff ’s third-party funder?

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