Torts - Cases, Principles, and Institutions Fifth Edition, 2016a

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Witt & Tani, TCPI 1. Introduction In short, the only institutions that could possibly know the overall size of the American tort system are the insurers. And that tells us a lot about the system we are studying. It is partydriven, highly opaque, radically decentralized, and vast. Taken together, these features present the tort lawyer with an important challenge: What goals or moral projects could possibly be so important as to make U.S. tort law worth its stunningly high costs? 5. Accident Rates and the Deterrence Goal One goal tort jurists often advance is the deterrence of unreasonably dangerous conduct. The logic here is simple and intuitively attractive. Tort law raises the price of injurious behavior. As a result, the logic goes, the prospect of tort liability should decrease the amount of injurious behavior in the world. Deterrence theory has further implications and wrinkles. We will return to these at a number of junctures later in the book. But the important point for now is that the risk of tort damages ought to lead rational parties to take into account the costs of their behavior in a way they might not, absent tort liability. Of course, tort law is one of many regulatory mechanisms that aim to accomplish the goal of improving safety standards. Consider, for example, state inspection regimes for everything from housing code compliance to factory employment standards. The federal Food and Drug Administration seeks to guarantee the safety of pharmaceuticals and food products. The Federal Highway Administration’s Office of Safety issues regulations and guidelines with an eye toward automobile accidents. The Consumer Product Safety Commission does the same for consumer goods. Even aside from regulators, the market itself creates many incentives for safety on the part of market actors seeking to attract buyers, passengers, or clients. Does tort law add to the deterrence function played by these other regulatory institutions? Formal evidence is considerably more difficult to come by, in no small part because of the difficulties described above in obtaining good information about the size and significance of tort costs. Nonetheless, anecdotal evidence suggests that in the United States tort law does shape behavior around risk and safety. We routinely read news stories about firms that claim to have made some decision—often an unpopular one—on the basis of the risk of litigation. Consider the big picture trends in accidental and violent injuries over time. For the past half-century and more—precisely the time during which tort costs have soared—rates of accidental death have declined substantially. This is not to say that tort law has caused that decline. It might be the case that causation runs in the other direction: improvements in safety may have generated higher expectations of safety and thus led to heightened standards in tort law. Either way, the trend is striking. Since 1960, accidental deaths in the United States have fallen by nearly half. 14
Witt & Tani, TCPI 1. Introduction Source: Statistical Abstracts of the U.S. (2014). 15
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