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

Champions For Justice

Sounding the Alarm on Mass Incarceration

Champions For Justice

Sounding the Alarm on Mass Incarceration

Conversation with U.S. Solicitor General Donald B. Verrilli, Jr.
JAN
28
10:30 am - 11:30 am
RWU Law Appellate Courtroom 283
Champions for Justice Dinner and Public Interest Auction
JAN
30
5:00 pm - 9:00 pm
Providence Biltmore Hotel
Master the Basics of Spinal Radiology
FEB
04
5:30 pm - 8:30 pm
Sheraton Providence Airport Hotel
Behind Closed Doors
FEB
11
7:00 pm - 8:30 pm
Appellate Courtroom - Room 283
Washington, DC Law Alumni Reception
FEB
24
6:00 pm - 7:30 pm
Marriott Washington at Metro Center, 775 12th Street NW, Washington, DC

Trending@RWULaw

01/26/2015
By Professor Jared Goldstein
On Wednesday, January 28, 2015, I’ll be interviewing Donald Verrilli, Jr., the Solicitor General of the United States, in an event that’s been billed as a “Fireside Chat.” Those looking to find...


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.