Reference no: EM131866239

The next two (2) questions are based on the following information: Suppose the plaintiff, Patty, sues the defendant, David, for monetary damages in tort. Patty and David agree that if Patty takes her case to trial and wins, she will receive a judgment in the amount of $100,000. However, in order to take the case to trial, Patty will incur litigation costs in the amount of $20,000. And if the case is taken to trial, David will incur litigation costs in the amount of $20,000 as well. Patty and David, however, disagree with respect to the probability that Patty will win at trial. Patty thinks she has a 90% chance of winning at trial, while David thinks she will only win with a probability of 60%. Given the information above, under the differing perceptions (dual optimism) model, which of the following is true concerning the possibility of settlement under the American rule? The parties will settle, and Patty will receive a settlement amount between $60,000 and $90,000. The parties will settle, and Patty will receive a settlement amount between $70,000 and $80,000. The parties will settle, and Patty will receive a settlement amount between $84,000 and $86,000. The parties will not settle, and the case will proceed to trial. 3 points QUESTION 15 Given the information above, under the differing perceptions (dual optimism) model, which of the following is true concerning the possibility of settlement under the English rule? The parties will settle, and Patty will receive a settlement amount between $60,000 and $90,000. The parties will settle, and Patty will receive a settlement amount between $70,000 and $80,000. The parties will settle, and Patty will receive a settlement amount between $84,000 and $86,000. The parties will not settle, and the case will proceed to trial.