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.
“[This] is certainly a masterpiece.”—Thomas S. Ulen, Journal of Economic Literature
“The strength of Shavell’s book is its lucid, structured development and explication of the economic model. It represents the best systematic presentation of the relevance of economic argument for issues of risk allocation.”—Jules L. Coleman, Yale Law Journal
“Steven Shavell…[has] drawn upon [his] previous path-breaking work to issue [one of] the most important books in the law and economics of tort law since the release in 1970 of Guido Calabresi’s The Costs of Accidents…The work is a masterful tribute to the power of economic modelling and the use of optimization techniques…I, for one, was immensely impressed by the richness of the insights that Shavell’s theoretical approach provided into the fundamental issues of tort law.”—John J. Donohue III, Harvard Law Review
Accident law, if properly designed, is capable of reducing the incidence of mishaps by making people act more cautiously. Scholarly writing on this branch of law traditionally has been concerned with examining the law for consistency with felt notions of right and duty. Since the 1960s, however, a group of legal scholars and economists have focused on identifying the effects of accident law on people’s behavior. Steven Shavell’s book is the definitive synthesis of research to date in this new field.
Written by a lawyer and an economist, this is the first full-length economic study of tort law--the body of law that governs liability for accidents and for intentional wrongs such as battery and defamation. Landes and Posner propose that tort law is best understood as a system for achieving an efficient allocation of resources to safety--that, on the whole, rules and doctrines of tort law encourage the optimal investment in safety by potential injurers and potential victims.
The book contains both a comprehensive description of the major doctrines of tort law and a series of formal economic models used to explore the economic properties of these doctrines. All the formal models are translated into simple commonsense terms so that the "math less" reader can follow the text without difficulty; legal jargon is also avoided, for the sake of economists and other readers not trained in the law.
Although the primary focus is on explaining existing doctrines rather than on exploring their implementation by juries, insurance adjusters, and other "real world" actors, the book has obvious pertinence to the ongoing controversies over damage awards, insurance rates and availability, and reform of tort law-in fact it is an essential prerequisite to sound reform. Among other timely topics, the authors discuss punitive damage awards in products liability cases, the evolution of products liability law, and the problem of liability for "mass disaster" torts, such as might be produced by a nuclear accident. More generally, this book is an important contribution to the "law and economics" movement, the most exciting and controversial development in modern legal education and scholarship, and will become an obligatory reference for all who are concerned with the study of tort law.
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
This bold book challenges a contemporary consensus on the titanic figure of Oliver Wendell Holmes. Holmes is the acknowledged source of twentieth-century tort law, but David Rosenberg takes sharp issue with the current portrayal of Holmes as a legal formalist in torts who opposed the notion of strict liability and dogmatically advocated a universal rule of negligence, primarily to subsidize industrial development. Marshaling the evidence found in Holmes' classic The Common Law and other writings, the author reveals that the opposite was the case, and, in the process, raises troubling questions about the present state of legal scholarship.
It was Holmes who founded the modern conception and justification of strict liability. He envisioned an expansive role for strict liability to augment the negligence rule in preventing and redressing injury from industrial activity. This recovery of Holmes' theory of torts provides new insights into the nature of the jurisprudence that launched the American legal realist movement, and also overturns standard interpretations of the history of tort law.
Rejecting the prevailing view that either strict liability or negligence reigned exclusively, Holmes and his contemporaries reconciled the existence of both rules, and advocated reforms of tort law to protect society from the unprecedented hazards of industrial life. The parallel drawn by the book between their response and ours in grappling with the novel problem of mass torts confirms Holmes' belief in the adaptive genius of the common law.
Kenneth Abraham explores the development and interdependency of the tort liability regime and the insurance system in the United States during the twentieth century and beyond, including the events of September 11, 2001.
From its beginning late in the nineteenth century, the availability of liability insurance led to the creation of new forms of liability, heavily influenced expansion of the liabilities that already existed, and continually promoted increases in the amount of money that was awarded in tort suits. A “liability-and-insurance spiral” emerged, in which the availability of liability insurance encouraged the imposition of more liability, and, in turn, the imposition of liability encouraged the further spread of insurance.
Liability insurance was not merely a source of funding for ever-greater amounts of tort liability. Liability insurers came to dominate tort litigation. They defended lawsuits against their policyholders, and they decided which cases to settle, fight, or appeal. The very idea behind insurance––that spreading losses among large numbers of policyholders is desirable––came to influence the ideology of tort law. To serve the aim of loss spreading, liability had to expand.
Today the tort liability and insurance systems constantly interact, and to reform one the role of the other must be fully understood.
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.
A waiter spills hot coffee on a customer. A person walks on another person’s land. A moored boat damages a dock during a storm. A frustrated neighbor bangs on the wall. A reputation is ruined by a mistaken news report. Although the details vary, the law recognizes all of these as torts, different ways in which one person wrongs another. Tort law can seem puzzling: sometimes people are made to pay damages when they are barely or not at fault, while at other times serious losses go uncompensated. In this pioneering book, Arthur Ripstein brings coherence and unity to the baffling diversity of tort law in an original theory that is philosophically grounded and analytically powerful.
Ripstein shows that all torts violate the basic moral idea that each individual is in charge of his or her own person and property, and never in charge of another individual’s person or property. Battery and trespass involve one person wrongly using another’s body or things, while negligence injures others by imposing risks to them in ways that are inconsistent with their independence. Tort remedies aim to provide a substitute for the right that was violated.
As Private Wrongs makes clear, tort law not only protects our bodies and property but constitutes our entitlement to use them as we see fit, consistent with the entitlement of others to do the same.
Two preeminent legal scholars explain what tort law is all about and why it matters, and describe their own view of tort’s philosophical basis: civil recourse theory.
Tort law is badly misunderstood. In the popular imagination, it is “Robin Hood” law. Law professors, meanwhile, mostly dismiss it as an archaic, inefficient way to compensate victims and incentivize safety precautions. In Recognizing Wrongs, John Goldberg and Benjamin Zipursky explain the distinctive and important role that tort law plays in our legal system: it defines injurious wrongs and provides victims with the power to respond to those wrongs civilly.
Tort law rests on a basic and powerful ideal: a person who has been mistreated by another in a manner that the law forbids is entitled to an avenue of civil recourse against the wrongdoer. Through tort law, government fulfills its political obligation to provide this law of wrongs and redress. In Recognizing Wrongs, Goldberg and Zipursky systematically explain how their “civil recourse” conception makes sense of tort doctrine and captures the ways in which the law of torts contributes to the maintenance of a just polity.
Recognizing Wrongs aims to unseat both the leading philosophical theory of tort law—corrective justice theory—and the approaches favored by the law-and-economics movement. It also sheds new light on central figures of American jurisprudence, including former Supreme Court Justices Oliver Wendell Holmes, Jr., and Benjamin Cardozo. In the process, it addresses hotly contested contemporary issues in the law of damages, defamation, malpractice, mass torts, and products liability.
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.
Since 1958 state courts of last resort in the United States have handed down a notably larger number of overruling decisions than ever before. This distinctive record raises many questions about how and by whom law reform should be effected. Mr. Keeton examines this issue in relation to private law the branch of law concerned with the rights and duties of private individuals toward each other, enforceable through civil proceedings.
In the first part of this book, the author reviews methods of law reform. He focuses on the role of the courts and legislatures as agencies of abrupt change; the remarkable rate at which the role of the courts has grown; and the means by which courts may discharge their increased responsibility for changing private law to meet contemporary needs. He strongly urges a more active and imaginative participation in law reform by both courts and legislatures, and proposes concrete methods for achieving it.
In the second part of this book, Mr. Keeton concentrates on reform in two important areas of private law: harms caused by defective products and by traffic accidents. He considers the developing rules for strict liability, and discusses the issues of principle underlying the basic protection plan for traffic victims--a proposal, of which he is co-author, which is under consideration in a number of state legislatures.
The closing chapter treats problems stemming from the necessity of blending the old with the new when private law reform is undertaken. This discussion stresses one of the book's recurring themes: the need to balance stability and predictability of law with flexibility and reform.
The author disposes of some misconceptions about the role of public policy in a workable legal system-misconceptions that sometimes affect the attitudes and thinking not only of professionals in the field of law, but also of those who see the system from the outside.
This book contains controversial ideas that will be of interest to all who are concerned with law reform, whether professionally or as informed citizens.
A bold challenge to a central assumption in modern moral and legal thinking, showing that wrongs and rights are not flip sides of the same coin but instead represent fundamentally distinct moral phenomena.
It is commonplace to regard rights and wrongs as mirror images of each other: to be wronged, we think, is to have one’s rights violated. According to this familiar picture of the moral landscape, there is an inescapable relationship between our claims on others and our complaints against them. Indeed, if to have a right means just that one can reasonably claim redress for being wronged, then there is really nothing separating wrongs and rights.
Legal scholar and philosopher Nicolas Cornell rejects this view. He argues that although wrongs and rights often correspond and overlap, they diverge systematically in a range of contexts and play substantively different roles in our lives. Wrongs are not merely the outline left where rights have been taken away, and rights are more than just the glimmer of future liability.
To make its case, Wrongs and Rights Come Apart engages a variety of examples from literature, legal cases, moral philosophy, and contemporary culture. In accessible, lively prose, Cornell explores topics such as illicit promises, forgiveness, animal rights, and economic exploitation. It turns out that potential wrongs—unlike rights—do not determine how we ought to conduct ourselves. And crucially, rights—unlike wrongs—do not tell us what corrective action is appropriate after a violation. Only by seeing rights and wrongs as distinct concepts, Cornell concludes, can we do justice to the richness of our interpersonal obligations.
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