How to Value Important Cases: Introducing Magnitude
Managing that spectrum effectively is critical. But when cases get complex, even great lawyers have a hard time placing values on them. We have a solution to this: Magnitude®, our new artificial intelligence tool that takes the good advice of your preferred lawyers about the merits of a claim and translates it into dollars.
To illustrate why this is important, consider this hypothetical case of a traffic accident (this scenario keeps things simple, but you can substitute virtually any fact pattern in any area of law):
The Situation | The Plaintiff, who was rendered a paraplegic when her vehicle collided with Company’s vehicle, sues Company. |
What Your Legal Counsel Thinks | The jury will find no fault with Company 80% of the time. If fault is found, counsel expects Plaintiff to get about 25% of the fault half the time, and the rest of the time most of it. The case is pending in a modified comparative fault jurisdiction. |
Estimated Damages | Each number within these ranges is seen as equally likely:
|
What the Plaintiff Demands | $35M all in, although your counsel thinks that is completely unreasonable, and stands by her estimates above. |
What is the average exposure at trial in this case, based on your counsel’s estimates of these various possible outcomes?
- $1.4 million
- $3.3 million
- $5.5 million
- $8.1 million
Check back here tomorrow for the answer.
Magnitude® is a Monte Carlo simulation system, created by a Schiff Hardin trial lawyer, to tackle this valuation problem. If Magnitude® sounds like it could improve your bottom line, contact Jonathan Judge for a demonstration or to talk through potential claims.