Should the level of liability imposed on an injurer be based on the harm he caused or instead on the gain he obtained from engaging in the harmful act? There is a strong reason to favor liability based on harm rather than gain when account is taken of the possibility of legal error. Notably,...

It is commonly thought that a lawyer working under a contingent fee arrangement has an excessive motive — relative to his client’s interest — to settle the case, leading to a lower-than-desirable settlement amount and a high settlement rate. The conventional analysis that...