Full Record

Introduction -- Significance of valuation of litigation position to settlement strategy -- Step 1: Calculate expected value of the litigation position -- Definition: Expected value -- Example: Coin toss -- -- Expected value in litigation -- Outcome probability -- Implications for the role of barristers in settlement -- Step 2: Valuation adjustment for ancillary consequences of litigation -- Ancillary advantages of litigation -- Ancillary disadvantages of litigation -- Bringing ancillary consequences to valuation account -- Worked example -- Step 3: Further valuation adjustment for risk -- Risk 1: Risk profile adjustment -- General valuation principles: adjustment for risk -- Adjustment for risk and litigation -- Worked example: lottery ticket -- Worked example: litigation -- Risk profile -- Quantifying the risk premium -- Risk 2: Enforcement risk adjustment -- A worked example -- Implications of the methodology: it is much worse than you think -- The bargaining range