For either parties, entering into a private insurance contract may help to shift these risks to a risk-neutral risk bearer. For the defendant, similar risks apply and the award of the claim itself is an additional risk. For the claimant, such cost may include attorney fees, court fees, possibly a counterclaim for adverse costs in case the claim is dismissed, Footnote 1 and other costs. So, risk averse claimants and defendants may have reasons to look elsewhere – either in advance or as the case arises – for someone willing to bear the financial risks involved. A decision to lodge a claim in court or to defend against a claim, is a decision made under uncertainty: the costs are uncertain, and the outcome is uncertain.
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