Over the past century, tort law and insurance have developed deeply intertwined legal and economic roots. Insurance usually determines whether tort cases are brought to trial, whom plaintiffs sue, how much they claim, who provides the defense, how the case gets litigated, the dynamics of the settlement, and how much plaintiffs ultimately recover. But to what extent should liability rules be influenced by insurance? In this study, Mark Rahdert identifies the leading arguments both in favor of and against what he terms the "insurance rationale"—the idea that tort law should be structured to facilitate victim access to assured compensation.
The insurance rationale has been a leading force in the development of product liability law and, as a component of accident compensation, has significantly influenced pro-plaintiff advances in principal areas of tort law. However, the insurance rationale is also the source of great controversy. Critics charge that liability rules deliberately set to maximize plaintiffs' access to insurance funds have corrupted the system, causing insurance costs to spiral upward uncontrollably. Considering the strengths and weaknesses of both sides of the current debate, Rahdert develops a modified version of the insurance rationale that can become a tool for evaluating future tort reform proposals.
A woman terrified by the threats of a jilted suitor is denied police protection. A workman collapses on the job and the employer is slow to help him. A bully in a bar begins to carry out threats of serious injury to a customer, after the bartender’s lackadaisical response. Springing from varied areas of human activity, such cases occupy an important area of the legal battleground called modern tort law. They also provide the basis for a fascinating legal analysis by Marshall S. Shapo.
Tort law is an important social mediator of events surrounding personal injuries. It impinges on many other areas of the law—those dealing with crime, constitutional protections against government officials and agencies, and property rights. Since litigated tort cases often involve brutal treatment or accidents inflicting severe physical harm, this area of the law generates much emotion and complex legal doctrine.
Shapo cuts through the emotion and the complexity to present a view of these problems that is both legally sound and intuitively appealing. His emphasis is on power relationships between private citizens and other individuals, as well as between private persons and governments and officials. He undertakes to define power in a meaningful way as it relates to many tort issues faced by ordinary citizens, and to make this definition precise by constant reference to concrete cases. His particular focus is on an age-old problem in tort law: the question of when a person has a duty to aid another in peril.
In analyzing a large number of cases in this category, Shapo develops an analysis that blends considerations of economic efficiency and humanitarian concern. Recognizing that economic considerations are significant in judicial analysis of these cases, he emphasizes elements that go beyond a simple concern with efficiency, especially the ability of one person to control another’s actions or exposure to risk.
These considerations of power and corresponding dependence provide the basis for Shapo’s study of the duties of both private citizens and governments to prevent injury to others. Calling on a broad range of legal precedents, he also refers to social science research dealing with the behavior of bystanders when fellow citizens are under attack.
Beyond his application of a power-based analysis to litigation traditionally based in tort doctrine, Shapo offers some speculative suggestions on the possible applicability of his views to several controversial areas of welfare law: medical care, municipal services, and educational standards.
This book was written with a view to readership by interested citizens as well as legal scholars, judges, and practicing attorneys.
Contributors. Gregory S. Alexander, Margaret F. Brinig, F. H. Buckley, Robert Cooter, Steven J. Eagle, Robert C. Ellickson, Richard A. Epstein, William A. Fischel, Michael Klausner, Bruce H. Kobayashi, Geoffrey P. Miller, Timothy J. Muris, Robert H. Nelson, Eric A. Posner, Robert K. Rasmussen, Larry E. Ribstein, Roberta Romano, Paul H. Rubin, Alan Schwartz, Elizabeth S. Scott, Robert E. Scott, Michael J. Trebilcock
The traditional definition of torts involves bizarre, idiosyncratic events where a single plaintiff with a physical impairment sues the specific defendant he believes to have wrongfully caused that malady. Yet public attention has focused increasingly on mass personal-injury lawsuits over asbestos, cigarettes, guns, the diet drug fen-phen, breast implants, and, most recently, Vioxx. Richard A. Nagareda’s Mass Torts in a World of Settlement is the first attempt to analyze the lawyer’s role in this world of high-stakes, multibillion-dollar litigation.
These mass settlements, Nagareda argues, have transformed the legal system so acutely that rival teams of lawyers operate as sophisticated governing powers rather than litigators. His controversial solution is the replacement of the existing tort system with a private administrative framework to address both current and future claims. This book is a must-read for concerned citizens, policymakers, lawyers, investors, and executives grappling with the changing face of mass torts.
Hackney demonstrates how legal-economic thought has been affected by the prevailing philosophical ideas about objectivity, which have in turn evolved in response to groundbreaking scientific discoveries. Thus Hackney’s narrative is a history not only of law and economics but also of select strands of philosophy and science. He traces forward from the seventeenth-century the interaction of legal thinking and economic analysis with ideas about the attainability of certitude. The principal legal-economic theories Hackney examines are those that emerged from classical legal thought, legal realism, law and neoclassical economics, and critical legal studies. He links these theories respectively to formalism, pragmatism, the analytic turn, and neopragmatism/postmodernism, and he explains how each of these schools of philosophical thought was influenced by specific scientific discoveries: Newtonian physics, Darwin’s theory of evolution, Einstein’s theories of relativity, and quantum mechanics. Under Cover of Science challenges claims that the contemporary law and economics movement is an objective endeavor by historicizing ideas about certitude and empiricism and their relation to legal-economic thought.
In recent years critics have assailed the cost, inefficiency, and unfairness of American tort law, including products liability and medical malpractice. Yet victims of accidental injury who look to the tort system for deserved compensation often find it a formidable obstacle. Those who seek to reform tort law find legislatures, particularly the United States Congress, paralyzed by the clash of powerful special interest groups.
Understanding Enterprise Liability sheds new light on the raging tort reform debate by challenging its fundamental assumptions. Offering historical insights and fresh perspectives on the politics and possibilities for sensible reform, Virginia Nolan and Edmund Ursin pragmatically assess alternative routes to a workable, balanced, and equitable system of compensation for personal injury. They offer a specific proposal, based on the precedent of strict products liability that incorporates the insights of no-fault compensation plan scholarship to create an enterprise liability doctrine that should appeal to courts and to tort reformers.
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