Experiments on the Effects of Fee Shifting and Discovery on the Efficient Settlement of Tort Claims

In this paper, we apply the methods of experimental economics pioneered by 2002 Nobel Prize winner Vernon Smith to the study of the effects of several proposed tort reform options. Specifically, we study the effects of fee shifting and discovery on the efficient use of the courts. Because it is difficult, if not impossible, to measure efficiency in the real world, we believe that controlled experiments offer valuable contributions to the debate on tort reform. The experiments presented in this paper point to the following main conclusions: First, a symmetric cost-shifting rule, as embodied in Section 998, California Code of Civil Procedure (similar to proposed changes to Rule 68 of the Federal Rule of Civil Procedure), produces no difference in pre-trial settlement rates when compared to an environment without cost-shifting. Second, the inclusion of attorneys’ fees as recoverable costs under Section 998 improves settlement rates. Third, liberal discovery rules, which improve information symmetry, cause an improvement in pre-trial settlement rates. Finally, when efficiency is measured relative to the final bargaining positions in pre-trial negotiations, we find a much greater inefficiency in the use of the courts when attorneys’ fee are included over when they are not. This last conclusion suggests that policies directed towards tort reform are in fact ignoring an important feature of tort settlements, i.e., the hardening of positions as parties attempt to reduce their disagreement over a reasonable settlement

Phase 1/2 study of lumiliximab combined with fludarabine, cyclophosphamide, and rituximab in patients with relapsed or refractory chronic lymphocytic leukemia

Preclinical data demonstrate enhanced antitumor effect when lumiliximab, an anti-CD23 monoclonal antibody, is combined with fludarabine or rituximab. Clinical data from a phase 1 trial with lumiliximab demonstrated an acceptable toxicity profile in patients with relapsed or refractory chronic lymphocytic leukemia (CLL). We therefore pursued a phase 1/2 dose-escalation study of lumiliximab added to fludarabine, cyclophosphamide, and rituximab (FCR) in previously treated CLL patients. Thirty-one patients received either 375 mg/m2 (n = 3) or 500 mg/m2 (n = 28) of lumiliximab in combination with FCR for 6 cycles. The toxicity profile was similar to that previously reported for FCR in treatment of relapsed CLL. The overall response rate was 65%, with 52% of patients achieving a complete response (CR), which compares favorably with the CR rate previously reported for the FCR regimen alone in relapsed CLL. The estimated median progression-free survival for all responders was 28.7 months. The addition of lumiliximab to FCR therapy is feasible, achieves a high CR rate, and does not appear to enhance toxicity in previously treated patients with CLL. A randomized trial comparing lumiliximab plus FCR with FCR alone is underway to define the benefit of this combination in relapsed CLL. This trial was registered at clinicaltrials.gov as NCT00103558