This study uses a competing risk regression analysis to examine commercial disputes in Slovenia to assess how the stages and features of the litigation process can impact the timing of settlement. Overall, the study found when parties participate in mediation and the complete the first court hearing session, the time to settlement decreases the parties are required to refine their expectations about the case outcome. Cases mediated before the first court hearing were 170% more likely to settle before the hearing than similarly-situated cases that did not mediate. Additionally, the study also found that cases that mediated more than 500 days after filing were only 70% more likely to settle before the next hearing and cases that waited to mediate 800 days or more from filing were less likely to settle than those that did not mediate. Researchers also found that judicial workload can indirectly impact the timing of settlement by delaying the timing of the first court hearing session. Finally, researchers found that the number of disputing parties and the value of the plaintiff’s initial claim were not significant predictors for the timing of settlement.
Litigation and the Timing of Settlement: Evidence from Commercial DisputesGrajzl, Peter; Zajc, Katarina. Sep. 24, 2015