In part 1 I introduced the subject of torts and hinted at some potential problems with this area of law. We'll tackle those issues in this post. I'm summarizing information from the wiki on tort reform.
Tort reform deals with revising current tort law with the following ideas in mind.
Compensation Principle
Successful tort lawsuits usually end in monetary rewards. The problem is quantifying how much money the guilty party should pay. How much is a broken leg worth? What is the exact dollar amount needed to offset emotional trauma? If I ruin your reputation, how much would it cost me to fix it?
Punitive Awards and Juries
In addition to compensation for loss, juries sometimes have the right to give punitive awards. Punitive awards are extra punishment for guilty parties that are especially despicable, and the sums can be enormous. This is problematic because victims who engender sympathy (the elderly, kids who are cute, people who can afford nice suits) could potentially receive more "justice".
Compensation Culture
Recession hitting your wallet hard? You should have spent New Years Eve driving around the bar district with your headlights turned off. If you were lucky enough to be hit by a drunk driver with good insurance you'd be rich!
Economic Effects
Frivolous lawsuits and out of control damages have a ripple effect on the economy. Insurance is more expensive. Health care is more expensive. Also, some argue that fear of litigation stagnates innovation. No Dr. House-style mavericks in the real world.
Equality in Treatment
What about injuries where no one is at fault? If I randomly have a tooth knocked out by some natural occurrence, I get my tooth fixed. If you have a tooth knocked out because I can't hit my 5-iron, you get your tooth fixed plus a monetary reward. Is this fair?
Health and Safety
Perhaps the threat of huge penalties will cause the average person to act more responsibly. Does tort law encourage safe behavior?
Tomorrow we'll look at an actual case from the Torts section of Life of a Law Student.
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