An Analysis Of The Litigation Costs Of Civil Litigants By Law And Economics

Litigation cost is considering whether to adopt the litigation as a way to resolve disputes need to be aware of the important factors. Since the last century 60 s, economics of western legal scholars began to try to use the theory and method of economics to analyze and evaluate the current laws and legal system, which is widely applied microeconomics theory. These scholars believe that people follow the laws and regulations or any other system to implement their own behavior is going to cost, also can produce benefits. Litigation as a specific way to solve disputes, at the same time, it must be pay a certain cost behavior. Litigation process is legal value from the state ought to be converted to the realization of reality condition, at the same time, the material and spirit of the subject of litigation and pay the cost of the process. People to participate in the litigation activity, earnings will be compared with the litigation costs, which will decide whether to prosecute and litigation.Litigation costs and benefits of the problem is getting more and more became the various countries’ legislatures, issues of common concern to the judicial organ and the litigants. At present, our country civil action are facing similar problems, and other countries, lawsuit time consuming and economic spending big, litigation and were not adapted to the needs of the development of social economy. Although the number of lawsuits in recent years rising year by year, but dropped the mediation of the nearly 8 years an average annual 62.25% rate seems to be implied the economic benefits of information. Resources are scarce in the market, rational economic man are self-interested parties choose suit as a means of dispute resolution may not be the measure of the expected cost benefit accurately, and with the deepening of the litigation, the cognition of costs and benefits is becoming increasingly clear that the choice of behavior is becoming more and more rational, finally lead to the vast number of people gave up the lawsuit the solution. How to get to achieve maximum benefit with minimum cost, or with the minimum cost to realize social justice, safeguard the rights and interests of the parties has become a basic demand of people.Through the benefit analysis model, influencing the cost on filing decisions were found in inequality, the influence of the number of civil cases and the influence on the civil behavior generated.