Strategic Legal Bullying

48 Pages Posted: 2 Dec 2015 Last revised: 19 Apr 2016

See all articles by David Orozco

David Orozco

Florida State University - College of Business

Date Written: April 13, 2016

Abstract

The competitive, market-based economy and adversarial legal system in the U.S. encourage strategic behavior and decision-making. This system often yields positive economic results. The system has a dark side, however, since strategic and unethical actors exploit the high costs of the legal system to harm individuals, small businesses, non-profits and society. In particular, strategic legal bullying exploits the high costs of the legal system to advance a weak or non-existent legal claim or argument that yields a favorable result at the expense of a weaker party. This article defines and analyzes this harmful practice in economic terms and classifies it as a form of rent-seeking behavior. The article also analyzes the various manifestations of strategic legal bullying practices and the defensive methods through which it can be countered. Business norms and ethics play a fundamental role in the ongoing efforts to counterbalance the harmful effects of strategic legal bullying.

Keywords: Legal strategy, ethics, corporate social responsibility, CSR, norms, economics, rent-seeking, non-market strategy

JEL Classification: A1, H7, H4, K4, L12, L5, M14

Suggested Citation

Orozco, David, Strategic Legal Bullying (April 13, 2016). New York University Journal of Law and Business, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2697273 or http://dx.doi.org/10.2139/ssrn.2697273

David Orozco (Contact Author)

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

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