Showing papers on "Damages published in 1999"

Wrongful life, procreative responsibility, and the significance of harm

Abstract: A wrongful life suit is an unusual civil suit brought by a child (typically a congenitally disabled child)1 who seeks damages for burdens he suffers that result from his creation Typically, the child charges that he has been born into an unwanted or miserable life2 These suits offer the prospect of financial relief for some disabled or neglected children and have some theoretical advantages over alternative causes of action3 But they have had only mixed, mostly negative, success4 They have, however, spurred considerable philosophical interest5 This attention, though, has been primarily focused on issues about the coherence of complaining about one’s existence or its essential conditions These suits also raise important, but less well-probed, philosophical questions about the morality of procreation and, more generally, about the moral significance of imposed, but not consented to, conditions that deliver both significant harms and benefits

Are Juries Less Erratic than Individuals? Deliberation, Polarization, and Punitive Damages

Abstract: How does jury deliberation affect the pre-deliberation judgments of individual jurors? Do deliberating juries reduce or eliminate the erratic and unpredictable punitive damage awards that have been observed with individual jurors? In this paper we make progress on these two questions, in part by reporting the results of a study of over 500 mock juries composed of over 3000 jury eligible citizens. Our principal finding is that juries did not produce less erratic and more predictable awards than individuals, but actually made the problem worse, by making large awards much larger and small awards smaller still, even for the same case. Thus, a key effect of deliberation is often to polarize individual judgments, a pattern that has been found in many other group decision making contexts. This finding of polarization--the first of its kind in the particular context of punitive damage awards--has important implications for jury awards involving both punitive and compensatory damages, and raises questions about the common belief that groups, and in particular juries, generally make better decisions than individuals.

Impacts of 1997-98 El Niño Generated Weather in the United States.

Abstract: This paper assesses the major impacts on human lives and the economy of the United States resulting from weather events attributed to El Nino 1997-98. Southern states and California were plagued by storms, whereas the northern half of the nation experienced much above normal cold season temperatures and below normal precipitation and snowfall. Losses included 189 lives, many due to tornadoes, and the major economic losses were property and crop damages from storms, loss of business by the recreation industry and by snow removal equipment/supplies manufacturers and sales firms, and government relief costs. Benefits included an estimated saving of 850 lives because of the lack of bad winter weather. Areas of major economic benefits (primarily in the nation's northern sections) included major reductions in expenditures (and costs) for natural gas and heating oil, record seasonal sales of retail products and homes, lack of spring flood damages, record construction levels, and savings in highway-based...

Juror judgments in civil cases: Effects of plaintiff's requests and plaintiff's identity on punitive damage awards.

Abstract: Two experiments were conducted to study the manner in which civil jurors assess punitive damage awards. Jury-eligible citizens were shown a videotaped summary of an environmental damage lawsuit and told that the defendant had already paid compensatory damages. They were asked to judge liability for punitive damages and, if damages were to be assessed, to assign a dollar award. Three independent variables were manipulated in the case materials: the dollar amounts that were explicitly requested by the plaintiffs in their closing arguments to the jury, the geographical location of the defendant corporation, and the location of the lead plaintiff. Consistent with prior findings of anchor effects on judgments, we found that the plaintiffs requested award values had a dramatic effect on awards: the higher the request, the higher the awards. We also found that local plaintiffs were awarded more than were geographically remote plaintiffs, while the location of the defendant company did not have reliable effects on the awards. The implications of these results for procedures in civil trials and for theories of juror decision making are discussed.

A Framework for Benefit-Cost Analysis of Adaptation to Climate Change and Climate Variability

Abstract: The potential damages of climate change and climate variability are dependent upon the responses or adaptations that people make to their changing environment. By adapting the management of resources, the mix and methods of producing goods and services, choices of leisure activities, and other behavior, people can lessen the damages that would otherwise result. A framework for assessing the benefits and costs of adaptation to both climate change and climate variability is described in the paper. The framework is also suitable for evaluating the economic welfare effects of climate change, allowing for autonomous adaptation by private agents.

Contract Damages and Cooperative Investments

Abstract: We study alternative breach remedies in the presence of specific investments that generate a direct benefit to the investor's trading partner (referred to as "cooperative investments."). We find that (i) expectation damages perform very poorly, inducing no cooperative investment; (ii) privately stipulated liquidated damages can achieve a better, albeit inefficient, outcome; and (iii) the reliance damages perform the best, achieving the efficient outcome if ex post renegotiation is possible. These rankings stand in contrast to those found in the existing literature, but they explain many observed contracting practices.

Delay and Settlement in Litigation

Abstract: Delay in litigation is a policy concern in many jurisdictions. Little evidence is available on the causes of such delay, however. We present a version of Spier's (1992) bargaining model of litigation and derive directly a functional form for the conditional probability of case settlement. We then estimate this and test predictions about the effects of legal costs and uncertainty over damages and liability on the conditional probability of settlement, using data from negligence claims against several NHS Trusts. Our results provide a direct test of the model and shed light on the causes of settlement delay in England.

Anchoring in the courtroom: The effects of caps on punitive damages.

Abstract: Responding to the perception that civil damage awards are out of control, courts and legislatures have pursued tort reform efforts largely aimed at reigning in damage awards by juries. One proposed method for reigning in civil juries is to limit, or cap, the amount that can be awarded for punitive damages. Despite significant controversy over damage awards and the civil litigation system, there has been little research focusing on the process by which juries determine damages. In particular, there is a paucity of research on the possible effects of placing caps on punitive damages. The present research examines punitive damage caps and reveals an anchoring effect of the caps on both compensatory and punitive damages. A second experiment replicates this effect and examines the moderating effect of bifurcating the compensatory and punitive damage decisions.

The general principles of EC law

Abstract: Table of Cases Table of Legislation The General Principles of Law in the Community Legal Order The Principle of Equality The Principle of Proportionality: Review of Community Measures The Principle of Proportionality: Review of National Measures Legal Certainty and Protection of Legitimate Expectations Fundamental Rights The Rights of Defence The Principle of Effectiveness Principles governing Liability in Damages Conclusion Bibliography Index

Economic Impacts of an Unscheduled, Disruptive Event: A Miyazawa Multiplier Analysis

Abstract: The damages and losses from unscheduled events, such as earthquakes, flood, and other major natural disasters, have significant and intense impacts on a region’s economy. The demand for the estimation of the economic impacts of recovery and reconstruction as well as of damages per se may become immediate after such events. Most analytical models of urban and regional economies, however, cannot confront these unscheduled and significant changes, since, at best, they assume incremental changes in systems over time. The consequences associated with the event, moreover, will have many aspects including damages on demand and supply sides, for example, since the event may affect a wide range of regional activities in different ways. The difficulties with impact analysis of unscheduled events are, therefore, 1) disentangling the consequences stemming directly and indirectly from the event; 2) deriving possibly different assessments at each spatial level — cities, region, or nation — (Hewings and Mahidhara, 1996), and 3) evaluating the reaction of households which are poorly understood (West and Lenze, 1994).

The Effect of Legal Rules on the Value of Economic and Non-Economic Damages and the Decision to File

Abstract: This study focuses on the economic consequences of tort reform. In particular, we address two issues. First, we test the relationship between tort reforms and claim severity for an automobile liability incident while controlling for a variety of cost drivers including the presence of no-fault rules, and the impact of a plaintiff's attorney. In addition to examining the effect of tort reforms on total claim severity, we also test their effect on economic and non-economic damages separately. Second, we test the proposition that tort reforms, by reducing the damages available at trial, have reduced the likelihood that an injured party will seek legal remedy. Both aspects of this study are examined with individual data from a large sample of insurance claims from 61 insurers. Our results suggest that many of the reforms have had a statistically significantly effect on total damages, non-economic damages and economic damages. Caps on non-economic damages, collateral source rule reforms, and minor reforms impacting prejudgment interest, frivolous suits, and provisions for periodic payments are negatively related to the value of non-economic claims, while joint and several reform is positively related to the value of non-economic claims. We find collateral source rule reforms and minor reforms are negatively related to the value of economic claims. We find that caps on non-economic damages and minor reforms are associated with a decreased probability to file. We do not find any evidence that joint and several or collateral source rule reform is associated with the decision to file.

Goal Conflict in Juror Assessments of Compensatory and Punitive Damages

Abstract: Recent tort reform debates have been hindered by a lack of knowledge of how jurors assess damages. Two studies investigated whether jurors are able to appropriately compartmentalize compensatory and punitive damages. In Study 1, mock jurors read a trial summary and were asked to assess compensatory and punitive damages in one of three conditions: (a) compensatory damages only, (b) punitive damages for the plaintiff, or (c) punitive damages for the state treasury. Results suggest that jurors who did not have the option to award punitive damages inflated compensatory damages via pain and suffering awards. Jurors were marginally more likely to award punitive damages when the plaintiff was the recipient. Mock jurors in Study 2 read a similar case summary and were asked to assess compensatory and punitive damages. Two factors were varied in Study 2: (a) egregiousness of the defendant's conduct, and (b) the recipient of any punitive damages (the plaintiff vs. a consortium of state funds). Jurors were more likely to award punitive damages when the defendant's conduct was more egregious and when the plaintiff was the recipient. The results suggest leakage between compensatory and punitive damage judgments, contrary to the law's mandate.

The neoliberal triad of anti-health reforms: government budget cutting, deregulation, and privatization.

Abstract: This paper presents the author's experiences and perceptions of the neoliberal triad of anti-health reforms—government budget cutting, deregulation, and privatization—which have been promulgated worldwide by the World Bank and the International Monetary Fund. The causes of this phenomenon are analyzed, and specific alternative health policies are recommended. The role of epidemiology in documenting the damages to health resulting from the anti-health reforms is discussed. Finally, the paper emphasizes the need not only for national organizational strategies but for action on the international level. The opponents of privatization need to meet together, to exchange experiences, and to develop effective strategies on a world scale that can be applied in industrial and developing nations.

Emerging Needs in Japan for Health Monitoring Technologies in Civil and Building Structures

Abstract: The needs for health monitoring systems are recently emerging in Japan for many industrial structures including civil and building structures. The trend has been accelerated after the 1995 Hyogo-Ken Nanbu Earthquake in which the damages of beam-column joints in many steel buildings were found only after conducting elaborate one-by-one eye-inspections. Difficulty to evaluate the damages in pile foundations was also reminded by this event. In addition, recognition of the importance of renovation and rehabilitation markets associated with huge accumulation of infrastructur es and buildings during the booming era is demanding urgent development of sophisticated health monitoring systems for minimizing costs and time by obtaining proper damage status. Two national projects launched by the Ministry of International Trade and Industries and the Ministry of Construction indeed reflect the strong needs for the technology. Noteworthy and important advances in fiber optic sensors and a network technology that will play an important role are briefly explained.

Deterrence and Damages: The Multiplier Principle and Its Alternatives

Abstract: * Professor of Law, Stanford University. B.A. 1974, Michigan State; J.D. 1977, University of Chicago. -Ed. I am grateful for comments from Howard F. Chang, Marc A. Franklin, Keith N. Hylton, Louis Kaplow, Daniel Klerman, Tracey L. Meares, A. Mitchell Polinsky, Richard A. Posner, James F. Strnad, Steven Shavell, Alan 0. Sykes, and participants in workshops at the Harvard, Stanford, and University of Chicago law schools.

Private Enforcement of Antitrust Law in the EU, UK and USA

Abstract: Preface by John Temple Lang Table of Cases Table of Treaties and Legislation Introduction 1. Introduction to comparative antitrust systems 2. Antitrust enforcement in the US 3. The EC System: The Treaty of Rome and Regulation 17 4. The UK System: From administration to prohibition 5. Foundations of private enforcement in the Community 6. Remedy principles and the competition rules 7. Aspects of private antitrust enforcement 8. Enforcement pluralism in the Community system 9. The Legal basis of private actions in the UK 10. Community antitrust claims as a breach of statutory duty 11. UK antitrust claims as a breach of statutory duty 12. The Community (antitrust) remedy solution 13. Prudential limitations on private actions 14. Limits on permissible private plaintiffs in US law 15. Special issues of standing and antitrust injury 16. Limits on permissible private plaintiffs under EC law 17. Antitrust damage principles in US law 18. How damages are calculated in particular cases 19. Damage principles in Community antitrust cases 20. Conclusions: The labours of Sisyphus Bibliography

Decisionmaking About General Damages: A Comparison of Jurors, Judges, And Lawyers

Abstract: I. THE DEBATE OVER JURY PERFORMANCE 752 II. GENERAL DAMAGES: THE LAW AND THE EMPIRICAL RESEARCH 757 A. The Law of General Damages 757 B. Empirical Research on Damages Awards 758 III. THE PRESENT RESEARCH 762 A. Overview 762

Against Fuller and Perdue

Abstract: The 1936 article by Lon Fuller and William Perdue, "The Reliance Interest in Contract Damages," deserves its place as a classic in the history of contract theory. As a piece of substantive contracts scholarship, though, that article is several decades out of date, and (I argue here) is not even very useful as an organizing principle in teaching contract remedies. The first part of my article surveys various normative theories that have been advanced by modern scholars, to show how little any of them employ or depend on Fuller and Perdue's three-way classification between the expectation, restitution, and reliance "interests." The second part surveys the remedies case law, showing that Fuller and Perdue's classification is not even very helpful as a descriptive organizing principle: it obscures important similarities between remedies that nominally protect different "interests," and important differences among remedies that nominally protect the same "interest." I conclude that Fuller and Perdue's three-way classification -- important as it undoubtedly was in the historical development of contract theory -- is no longer a useful analytic tool, and offer some suggestions as to what might replace their classification.

Optimal Insurance Under Random Auditing

Abstract: We provide a characterization of an optimal insurance contract (coverage schedule and audit policy) when the monitoring procedure is random. When the policyholder exhibits constant absolute risk aversion, the optimal contract involves a positive indemnity payment with a deductible when the magnitude of damages exceeds a threshold. In such a case, marginal damages are fully covered if the claim is verified. Otherwise, there is an additional deductible that disappears when the damages become infinitely large. Under decreasing absolute risk aversion, providing a positive indemnity payment for small claims with a nonmonotonic coverage schedule may be optimal.

Newspaper Coverage of Automotive Product Liability Verdicts

Abstract: Media coverage of litigation may affect perceptions and thereby behavior of litigants, judges,, juries, legislators and business decisionmakers. Their behavior influences various legal, social, political and economic outcomes. For product liability verdicts during 1983 to 1996 involving automobile manufacturers, we examine the amount of coverage in several dozen newspapers. We find almost no articles reporting on any of 259 verdicts for the defendant. Econometric analysis focuses on determinants of the amount of coverage of 92 verdicts for plaintiffs, 16 of which include punitive damages. Key determinants include the award amount, the nature of injuries, the vehicle's recall history, and especially the existence of a punitive component of damages regardless of its size. Beliefs about the outcomes of tort litigation-by citizens, attorneys, judges, juries, legislators and business decisionmakers-may have wide-ranging effects. This article analyzes econometrically a potentially important element in the formation of these beliefs: newspaper coverage. We analyze factors that contribute to the extent or amount of coverage in dozens of newspapers, but do not analyze or interpret the content of articles. Beliefs about the world of tort litigation can affect a diverse array of decisions and thereby affect legal, social, political and economic outcomes. The claiming behavior of injured individuals is likely to depend on their beliefs about the likelihood of prevailing in a lawsuit and the likely magnitudes of damage awards. Attorneys are likely to choose specialties-for example, whether to focus on personal-injury cases, and if so, what typeson the basis of their beliefs about the frequency and magnitudes of damages. The behavior of judges and juries in individual trials may be affected, for example, by their beliefs about whether the tort system tends to advantage plaintiffs or defendants, whether there is "too much litigation," and even whether the system is "out of control." The ability of tort-reform advocates to influence legislation depends on the beliefs of legislators and voters about the nature of the tort system, and advocates' influence on appellate court decisions, for example, depends on the beliefs about the system by appellate judges. Finally, the economic effects of the tort system are determined in large measure by its effects on business decisions-in the case of product liability, for example, effects on decisions about the design, manufacture and labeling of products-and such decisions depend on the beliefs of business decisionmakers about incentives stemming from the tort system. The beliefs about the tort system among members of these groups depend on the information they obtain and how they process this information.1 There is ample reason to suspect that mass media reporting of litigation events plays an important role in shaping the beliefs of members of the various groups. One reason is that comprehensive, systematic information about the world of tort litigation does not exist (see, e.g., Galanter et al. 1994). Another reason is that virtually all members of some groups-for example, citizens, potential claimants-and many members of the other groups are unlikely to be exposed to the systematic information that does exist. Many members of these groups are, however, exposed to mass media-including newspaper-reports about litigation and word of mouth generated by them. Thus newspaper coverage of litigation is likely to affect-- through beliefs of various groups-legal, social, political, and economic outcomes. Moreover, newspaper coverage may affect business decisions-and economic outcomes of the tort system-through routes other than effects on decisionmakers' beliefs about the workings of the tort system. First, newspaper reporting of litigation can contribute to indirect effects of litigation that are costly to companies, such as responses by regulators or customers.2 If company decisionmakers perceive such potential costs, then prospects for newspaper coverage could affect their decisions. …

Estimating Economic Damages in Class Action Securities Fraud Litigation

Abstract: This paper examines issues that an expert witness must resolve in estimating economic damages in class action lawsuits involving publicly traded common stock. These issues include measuring the extent to which misleading information distorted the price of the stock, determining the actual volume of purchases by public investors, and adjusting for in-and-out trading during the Class Period.

Harmonization of Products Liability Law in the European Community

Abstract: I. INTRODUCTION A. The Need for Harmonization An essential element of the common market envisioned by the Treaty Establishing the European Community (EC Treaty)' is undistorted competition. The legal differences between the laws of the European Community's (EC's) Member States impose different economic burdens on their competing industries. For example, prior to harmonization of product liability laws in Member States, if the economic loss caused by a defective product was borne by the producer, as was the case in France, the industry was in a much less favorable economic situation than in Italy where the damage caused had to be borne by the unfortunate victim. According to the fault liability principle in Italy, the victim could not secure compensation. This was true not only if actual damages paid were considered, but also in the context in which total insurance premiums were taken into account. In Germany, the total amount of insurance premiums paid by the pharmaceutical industry after the introduction of the Pharmaceutical Act2 in 1976 was 55 million DM at the value prevailing at that time. By contrast, the Italian industry had nothing to pay. Unequal economic burdens lead to distortions of competition. Furthermore, variations in laws reflect major differences in approaches to consumer protection. Therefore a product user enjoys a much higher degree of protection if, in the event of damage, he can successfully bring an action against the producer, as was possible in France, but again he could not bring such an action in Italy. One of the aims of the EC is consumer protection without discrimination in all Member States. Consequently, the EC should have uniform rules in such an important area as product liability. It must be borne in mind that the EC is much more than merely one international organization among others, such as the Council of Europe, European Free Trade Association (EFTA), or the United Nations. The EC has the power and authority to create directly applicable law under a legal procedure which is similar to that of sovereign states. The EC Treaty created the European Court of Justice with the power and authority to take and enforce decisions on legal disputes. Harmonized law promotes the economic and political integration of its Member States, an example of which is the Product Liability Directive.3 B. Legal Bases: Articles 3(h), 100, and 100a of the EC Treaty One of the tasks of the EC as defined in Article 3(h) of the EC Treaty is the "approximation of the laws of the Member States to the extent required for the proper functioning of the common market." This provision has three components. First, the EC has competence only to approximate Member States' laws, not to unify them. Unification of laws aims to ensure identical legal provisions, whereas approximation of laws leaves the identity of the national law unaffected. Second, the phrase "to the extent required" does not allow the approximation of all national laws, even where such approximation may lie in the general interest. The task is limited to legal areas which are of relevance to the basis of the EC, namely the common market, and more precisely to the proper functioning of the EC. The common market, the third component of this provision, is defined by four freedomsfree circulation of goods, persons, services and capital-and the preservation of a system of undistorted competition.4 As a result of recent developments in the Treaty of Maastricht amendments, this definition may, in a larger context, also cover the need to protect consumers' interests and the environment. Again, the EC has the power and authority to introduce measures necessary for the approximation of legal areas only if the legal provisions are relevant to the establishment and functioning of the common market and only if the respective legal provisions have a direct impact on the common market. Article 3(h) defines the scope of harmonization measures. …

The International Sale of Goods: Law and Practice

Abstract: PART A: INTERNATIONAL SALES GOVERNED BY ENGLISH LAW 1. Introduction to International Sales a. Subject Matter b. Organizations c. Choice of Law d. Speculation, Hedging and String Trading 2. The Performance Obligations of Seller and Buyer in English Law a. Interpretation of the Contract b. Implied Terms of Quality, Fitness and Description in International Commodity Sales c. Quantity: Entire and Severable Contracts d. Privity of Contract 3. FOB Contracts a. Nature of FOB Contracts b. Readiness to Load c. Port of Shipment d. Shipment e. Documentary Tender 4. CIF Contracts a. The Nature of a CIF Transaction b. Notice of Appropriation / Declaration of Shipment c. Timely Performance d. Bills of Lading e. Continuous Documentary Coverage f. Bill of Lading Supplemented by Charter Party g. Delivery Orders and Bulk Shipments h. Insurance Documents i. Lawful and Effective Documents j. Other documents k. Documentary Tender and Exhcange l. Arrival of the Ship 5. Import and Export Licenses a. Applying for Export and Import Licences b. Guaranteed Procurement or Due Diligence to Procure? 6. Payment a. Introduction b. Negotiabile Instruments c. Bank Collections and Letters of Credit 7. Impossibility of Performance a. Initial Impossibility (Mistake) b. Subsequent Impossibility (Frustration) 8. Passing of Property and Risk a. Passing of Property b. Reserving the Right of Disposal c. Transfer of Risk d. Retrospective appropriation of Lost Cargoes 9. Bills of Lading and Documents of Title a. The Buyer and the Carrier b. Bill of Lading as a Document of Title c. Evidentiary Function of Bills of Lading d. Bills of Lading: Other Matters e. Other Shipping Documents f. Non-Negotiable Documents and the Power to Transfer Title g. Alternatives to the Negotiable Bill of Lading 10. Remedies: Termination and Damages a. Termination of the Contract d. The Integrity of the Documentary Exchange c. Damages d. Excluding the Sale of Goods Act Rules e. The Twin Rights of Rejection and the Seller's Damages Liability PART B: INTERNATIONAL SALES GOVERNED BY THE UN SALES CONVENTION 1980 (CISG) 111. The CISG: General Issues a. Introduction b. Background to the CISG c. Sphere of Application d. Field of Operation e. Exclusions f. Role of UNIDROIT Principles g. Interpretation and Good Faith h. Filling Gaps in the Coverage of the CISG i. Excluding the CISG j. Reservations and Declarations k. Usages and Practices 12. The CISG and English Law Compared a. Formation of the Contract b. Conformity of the Goods c. Avoidance d. Anticipatory Breach e. Cure and Notice of Defect f. Rejection of the Goods g. Requiring Performance h. Money Claims i. Frustration of Contract

Is the Tort System in Crisis? New Empirical Evidence

Abstract: While journalists and politicians decry increasing tort liability, scholars have long questioned the existence of a tort crisis. This article uses a particularly comprehensive database and multivariate analysis to examine product liability and medical malpractice jury verdicts in a representative urban county over a recent 12-year period. Including variables such as injury severity, gender, type of alleged fault, trial length, number of lawyers, and number of expert witnesses, the study offers a comprehensive review of these verdicts. Among other findings, the study shows that (1) plaintiff win rates were low; (2) compensatory damages were modest; (3) punitive damages were nonexistent; (4) both win rates and verdict size declined between 1985 and 1996; (5) gender of parties, lawyers, and trial judge correlated significantly with some outcomes; and (6) obtaining a full census of verdicts was essential to the study's success because commercial verdict reporters were both underinclusive and biased toward pro-plaintiff verdicts.