American Law and Economics Review V6 N1 2004 (208-216)
American Law and Economics Review Vol. 6 No. 1, © American Law and Economics Association 2004; all rights reserved.
Filing a Nuisance Claim to Induce Successive Lawsuits
GRIPS (National Graduate Institute for Policy Studies)
Send Correspondence to: Jeong-Yoo Kim, GRIPS, 22 Wakamatsu-cho, Shimjuku-ku, Tokyo 1628677, Japan; Fax: (813) 3344-0220; E-mail: jyookim{at}albany.edu.
In this article, I provide a rationale for nuisance suits. I show that a plaintiff may file a nuisance suit if he expects that his suit may induce suits by other plaintiffs. If an initial plaintiff is too pessimistic about this possibility, a nuisance suit may not be filed even though it would be meritorious with joinder with another plaintiff. In this case, lawyers may play the role of reducing such coordination failure due to asymmetric information by providing potential plaintiffs with relevant information.