Professor John Chung weighs in on the implications of a settlement deal between the State of Rhode Island and two defendants in the 38 Studios lawsuit.

Upcoming Events

Attorney General Open Government Summit

Attorney General Open Government Summit

Boston Law Alumni Networking Reception
JUN
03
6:00 pm - 7:30 pm
Highball Lounge, Boston
Class of 2018 "How to Prepare for Law School" BBQ/Mixer
JUN
12
11:00 am - 2:00 pm
RWU Law, 10 Metacom Avenue, Bristol, RI 02809
Law Alumni Association Annual Breakfast Meeting
JUN
18
7:45 am - 9:15 am
Rhode Island Convention Center, Providence
17th Annual Rhode Island Attorney General Open Government Summit
JUL
31
8:30 am - 12:00 pm
RWU School of Law, Bristol, RI

Trending@RWULaw

05/20/2015
By Tom Peterson, 2L
Having served 22 years in the Navy before coming to law school, some habits die harder than others. One thing that we always stressed during my time in the Navy was filing a Post Exercise report – or...


Affordable Excellence at RWU LAW

Archives

Newsroom

Chung on 38 Studios Settlement

Professor John Chung weighs in on the implications of a settlement deal between the State of Rhode Island and two defendants in the 38 Studios lawsuit.

From PROVIDENCE BUSINESS NEWS: "Chafee lawsuit pays off" by Patrick Anderson, PBN Staff Writer

July 7, 2014: Another grueling June debate over whether the state should repay 38 Studios bondholders gave way to something unexpected: good news in the state’s lawsuit against architects of the failed deal.

Two defendants in the case, the R.I. Economic Development Corporation’s bond counsel on 38 Studios and his law firm, agreed to pay the state $4.37 million to avoid the potential risk of a trial. [...]

Professor John ChungAlthough certainly a positive development for the state’s case, the Afonso settlement does not necessarily mean the rest of the defendants will fall in line to settle, said Roger Williams University Law School professor John Chung.

Chung said although wanting to avoid being the last defendant standing in a large case like this can be a motivating factor, it’s usually somewhere down the list of multiple factors defendants have to consider.

One of those factors is insurance coverage as a source of funds, as it was in the Afonso settlement, where the defendants had a $5 million policy limit. The 38 Studios settlement went up to that limit with $430,000 used to pay legal bills already incurred by the defendants and another $200,000 set aside for future legal costs.

“An insurance policy is one of biggest factors in decisions to settle,” Chung said. “From the plaintiffs’ perspective – they might think defendants should pay more than the policy limit, but if that is on the table, they have to weigh that against the time and expense of going further.”

For full story, click here.