economics Paradigm Challenge

Over 80% of contract disputes in the US are decided by local judges who don't actually know much about legal doctrine.

March 25, 2026

Original Paper

Contract Law and Civil Justice in Local Courts

Justin Weinstein-Tull, Cathy Hwang

SSRN · 6461761

The Takeaway

While law schools focus on complex concepts like the 'parol evidence rule' or 'unconscionability,' this study reveals that the vast majority of real-world cases are heard by lay judges who have never heard of these terms. Instead, they ignore formal law in favor of 'vibes-based' adjudication, relying on personal fairness and community norms to settle the bulk of the country's legal conflicts.

From the abstract

Most American contract law disputes take place in the shadows, unnoticed by commentators, scholars, and casebooks. These disputes--often heard by lay judges in local courts that do not publish their opinions--account for more than 80 percent of total contract disputes. Using state-level filing data and original interviews with local court judges, this Article unearths, for the first time, this vitally important yet understudied world. Our findings provide a blueprint for new research on local co