P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 This page intentionally left blank ii 15:53 P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 exploring tort law Tort law provides individuals or groups redress for wrongful harm to every dimension of life from physical injury to property damage to personal insult Over past decades no body of law within the civil justice system has experienced greater ferment than the law of torts This edited collection comprises new scholarship from many of today’s most influential contributors to the evolving law of torts Topics include provocative analyses of original tort-type norms; punitive damages, proportional liability; the political-legal dynamics of the Restatement process; landmark modern torts decisions; the future of collateral source rules relative to various types of insurance; the role of risk information in assignment of seller liability; privity and freedom of contract; the vitality of negligence and duty rules, and optimal rules for vicarious liability The collection closes with chapters from civil code nation authorities on the European view of causation in toxic harm suits and on collective rights and actions in South America and in Europe M Stuart Madden is Distinguished Professor of Law at Pace University School of Law His primary teaching and scholarly interests are in the areas of torts, environmental torts, and products liability He is an elected member of the American Law Institute and serves on various policy advisory groups and scholarly advisory boards He has lectured internationally on tort and accident prevention subjects and has given testimony before both Houses of Congress on tort reform issues i 15:53 P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 ii 15:53 P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 EXPLORING TORT LAW Edited by M Stuart Madden Distinguished Professor of Law Pace University School of Law iii 15:53 CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521851367 © Cambridge University Press 2005 This publication is in copyright Subject to statutory exception and to the provision of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press First published in print format 2005 eBook (EBL) ISBN-13 978-0-511-34459-6 ISBN-10 0-511-34459-7 eBook (EBL) ISBN-13 ISBN-10 hardback 978-0-521-85136-7 hardback 0-521-85136-X ISBN-13 ISBN-10 paperback 978-0-521-61680-5 paperback 0-521-61680-8 Cambridge University Press has no responsibility for the persistence or accuracy of urls for external or third-party internet websites referred to in this publication, and does not guarantee that any content on such websites is, or will remain, accurate or appropriate P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 For my precious wife, Maria, with all of my love v 15:53 P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 vi 15:53 P1: NDZ 052185136Xpre CB915/Madden 521 85136 X July 25, 2005 CONTENTS Contributors page ix Preface xi introduction M Stuart Madden section i tort law in the new millennium: past as prologue tort law through time and culture: themes of economic efficiency 11 M Stuart Madden past as prelude: the legacy of five landmarks of twentieth-century injury law for the future of torts 52 Robert L Rabin section ii compensation and deterrence in the modern world twenty-first-century insurance and loss distribution in tort law 81 Kenneth S Abraham beyond master–servant: a critique of vicarious liability 111 Jennifer H Arlen and W Bentley MacLeod section iii duty rules, courts, and torts the disintegration of duty Ernest J Weinrib vii 143 15:53 P1: NDZ 052185136Xpre CB915/Madden 521 85136 X viii July 25, 2005 Contents managing the negligence concept: respect for the rule of law 187 James A Henderson, Jr rebuilding the citadel: privity, causation, and freedom of contract 228 Richard A Epstein controlling the future of the common law by restatement 262 Jane Stapleton information shields in tort law 295 David G Owen 10 the complexity of torts – the case of punitive damages 333 Guido Calabresi 11 the future of proportional liability: the lessons of toxic substances causation 352 Michael D Green section iv torts in a shrinking world 12 causation in products liability and exposure to toxic substances: a european view 403 Federico Stella 13 collective rights and collective actions: examples of european and latin american contributions 426 Juan Carlos Henao Index 483 15:53 P1: JZP 0521851367c13 CB915/Madden 478 521 85136 X July 25, 2005 Juan Carlos Henao urgency justifies it and there is a state that may create a serious doubt of the legality of the decision (Section 5).” Such “urgency” is established “when the questioned administrative decision damages a public interest, [and] the situation of the claimant or the interests being defended, [is being damaged] in a gross and immediate way,”191 such as when, for example, authorization given by a county to broaden some beaches is suspended as being in violation of law, placing flora and fauna in risk.192 One must note that only four months – which could have been even more prompt if the specific case had required it – elapsed between the issuance of the challenged authorization and the issuance of injunction of the Tribunal suspending the administrative act The petitioner must demonstrate urgency of the need for suspension of the administrative act, as well as the serious doubts as to its legality, for it may occur that prior to the authorization given to a corporation to use a municipal waste place, for example, neither urgency nor illegality are established by the mere allegation of the supposed risk.193 However, the scope of injunctions in connection with protecting collective rights, that also may be conceived by way of the r´ef´er´es administratifs, is yet to be defined in the case law As far as we know, there exist no injunctions issued by French judges giving orders to the administration to put in place specific programs protecting pertaining to collective rights and, even less, to indemnify economic collective rights which have been injured As Professor Guettier recites, the Maximum Court of Administrative Law has been reluctant to apply the new powers – created by written law and not by case law – because “traditionally there is the principle of separation between jurisdictional administration and active administration to justify the limitation of the powers of the judge.” Consequently, “it would seem that final reliance must be placed upon the Government, which ‘decides on the administration’ (Const., Oct 1958, Section 20) and the Prime Minister who leads it, to call attention to the need to enforce judicial decisions, and thus respect the rule of law But then, everything depends on the good will of the administration Can we be happy? It does not look like it.”194 One must therefore wait on the 191 192 193 194 French Maximum Court in Administrative Law, January 19, 2001, Conf´ed´eration nationale des radios libres, 228815, M Arrighi de Casanova, rapp., M Touvet, C du G., AJ 2001, p 150, chron M Guyomar and P Collin, D 2001, IR, p 597 French Maximum Court in Administrative Law, December 30, 2002, Commune de SixFours-les-Plages, 245621, Mme Vialettes, rapp., M Guyomar, C du G French Maximum Court in Administrative Law, December 30, 2002, Association Sauvegarde du patrimoine et du cadre de vie de Solerieux c/ D´epartement de la Drˆome, 242324, M Chaubon, rapp., M Lamy, C du G Christope Guettier, Injonction et astreinte, 1997 Jurisclasseur-Administratiff fasc 1114, No (Paris, 1997) 18:22 P1: JZP 0521851367c13 CB915/Madden 521 85136 X Collective Rights and Actions in Europe and Latin America July 25, 2005 479 development of the administrative jurisdiction on this important issue, more specifically, in connection with what will be understood to be the required executory measures for judicial decisions, with which the future of injunctions will be marked iii conclusion The following propositions follow from this discussion: (1) The absence of the popular action in a legal system does not mean that there are no means for bringing such actions The explicit adoption of the popular action is a political choice that implies more citizen participation in the destiny of collective rights In the systems with popular action the relations between the person and the public property representing the collective right are more close than in those systems where this action doesn’t exist But this does not imply that in those countries where this action is not established, collective property protection belongs only to the state It is true that the existence of the popular action grants more citizen participation in the evolution of the protection of public property, so one can state that this type of property is more judicially protected under the Colombian legal system than under the French legal system Nevertheless, one cannot infer that a legal system that does not allow for popular action impedes all ways of citizen participation (2) Colombian law expresses a category of right “for any one person in town” to bring action in order to protect a generous number of collective rights, because there is an express rule, written in the Constitution and in the law, as it corresponds to the written legal system to which it belongs In France, to the contrary, the approach to the popular action scheme to defend collective rights is by way of exception, and depends, in great measure, on the case law advances and on the scope that the judge may want to give to his own powers In this sense, Colombia represents a leading participative position in defense of the above-mentioned rights (3) The scope of the effective protection of collective rights varies in each system: there is more protection in those systems that recognize popular actions explicitly because if this action does not exist, one can only see its preventive stage as limited by the scope of the recours pour exc`es de pouvoir The absence of the popular action in France has implied that the state has the direct monopoly on requesting the reestablishment of the situation prior to the damage or harm, or the payment of collective damages to public property Neither individuals nor associations have been allowed to stretch the limits of the defense of public property allowed to them, and their challenges are limited to considerations of legality But this practice comes more from a historical habit of not requesting payment for collective damages from the 18:22 P1: JZP 0521851367c13 CB915/Madden 480 521 85136 X July 25, 2005 Juan Carlos Henao state than from actual legal norms In the future, much will depend on the scope given to the new powers of issuing injunctions recently received by the administrative judges in France, in relation to “orders to act” or injunctions that may be given to the administration (4) The existence of two different actions under Colombian law – action for nullification and popular action – has the effect of avoiding the necessity of collective rights having to be protected by means of the nullification action – recours pour exc`es de pouvoir – as it occurs presently in France In addition, the wide powers of injunction given to the Colombian judge in the popular action not require interpretative efforts either for the scope of the nullification action or for the judicial powers, as it does in France (5) The Colombian legal system differs from the French system in that it grants a subjective right to any individual or entity to defend collective rights Bearing this in mind, we can bypass the discussion on the “proclamatory” character of such rights, and one can incorporate them into a system of complete protection of rights, as it may exist for rights of other generations In France, the situation is different and this gives rise to the discussion of the nature of collective rights, even though in reference to social rights, it has been stated that “there are no specific means for obliging the state to perform a positive action to ensure a social right.”195 (6) The presence of the popular action in a legal system creates the risk that the enjoyment of an individual right, such as the right of contract, will be subordinated to the pursuit of collective rights This is a risk implied in the choice of which rights to enforce or favor, made by each legal system For this reason, one can state that if the protection of individual rights is more precarious under the Colombian legal system, it is because of the possibility of invalidating individual rights by means of popular action (7) Popular actions in Colombia apply, in a different way, the democratic principle of the separation of the three powers and allow one in certain circumstances to speak of the “judge-administrator.” This characteristic may perplex a French legal expert who may well consider that judges substitute for the administration, and in addition, that the normal interplay of powers in a democracy is overriden One may infer that, at least in a first stage, there will not be in France the wide variety of cases to be found in Colombia in which the judge enjoins the administration to include certain accounts in the 195 Essay, Maire Luce Pavia and Dominique Rousseau, La protection des droits sociaux fondamentaux dans l’ordre juridique de la France, in La protection des droits sociaux fon´ damentaux dans les Etats membres de l’Union euroeenne 359 (Athens, Brussels, and Baden, 2000) 18:22 P1: JZP 0521851367c13 CB915/Madden 521 85136 X Collective Rights and Actions in Europe and Latin America July 25, 2005 481 budget; to build public service devices; to repair national historic patrimony buildings; and so on, which is to say, cases in which the administrative adversarial system intrudes substantially into the tasks of the coordinate branches of national or local government Nevertheless, one may consider that, as the Colombian judge acts by virtue of powers granted by legal rules issued by its democratically-elected national legislature, there is no genuine risk of damage to the overall ideal of separation of powers Indeed, the sturdiness of ongoing respect among the judiciary, the legislative, and the executive branches is actually reinforced under the principle of harmonious collaboration 18:22 P1: JZP 0521851367c13 CB915/Madden 521 85136 X July 25, 2005 482 18:22 P1: irk 0521851367indA CB915/Madden 521 85136 X July 25, 2005 INDEX Abnormally Dangerous Activities See Strict Liability Accidents Accident Costs, Defined, 116 Accident Prevention, 77 Adams v Bullock, 341 Agent Orange, 377 “Agent Orange” Products Liability Litigation, 360 Agents Generally, 112 Actions of Principals as Substituting for, 120 Efficient Liability Rules for, 121 Individual Liability for, 122–123 Joint and Several Liability for, 123 Judgment Proof Agents, 119, 122–123, 132–134 Incentive to Hire, 135–136 Risk of Insolvency of, 123–124 Organization Liability for Actions, 112 Regulation of Precautions Taken, 112, 118, 119, 120, 137–139 Risk Taking by, 116 Sanctions of, 118, 119 Solvent Agents, 122 Vicarious Liability for Actions of, 112, 114 Predicated on Capacity To Control, 136–137 A.L.I See American Law Institute American Law Institute, 262, 264 Restatement Projects, Politics of, 268–271 Ames, Bruce N., 416 Andrews, J Dissent in Palsgraf, 152, 164 Apportionment of Liability, 352–357, 358 See Also Proportional Liability Comparative Contribution, 353 Corrective Justice, and, 355 Decreased Chance of Survival, 353, 355 Multiple Tortfeasors, 358 Preponderance of Evidence Standard, 353, 396 Aristotle, 32, 33 Golden Mean, 33 Involuntary Transactions, Liability for, 32 Misadventure, Liability for, 33 Nichomachaean Ethics, 32 Asbestos, 377, 380 Assumption of Risk, 57, 71 Primary, 71 Secondary, 72 Atkin, Lord, 144, 145, 147, 148, 154, 164, 165, 177, 180, 185 Australia Law of, 162, 165 Autonomy See Responsibility, Individual Automobile Compensation, 62 See also Liability, Automobile Babylonia See Mesopotamian Law Bagehot, Walter, 263 Barker v Lull Engineering Co., 247, 248 Barnes v American Tobacco Co., 419 Bartkewich v Billenger, 300 Becker, Gary, 339 Bendectin, 372, 388 Bentham, Jeremy, 335 Berger, J., 35 483 15:24 P1: irk 0521851367indB CB915/Madden 521 85136 X 484 Berger, Margaret A., 369 Blackmun, J., 368 Blackstone, 334 Boomer v Atlantic Cement Co., Inc., 35, 45 Breast Implants, 388 Brennan, Troyen, 417 Bystander Rule See Emotional Distress Calabresi, Guido, 41 , 46, 257, 258, 259, 352 Cheapest Cost Avoider, and, 41 Ideals, Beliefs and the Law, 342 The Decision for Accidents, 341 Tragic Choices, 342 California, 196, 301 , 302, 354 See Also Emotional Distress, 58 Bystander Plaintiffs, 188 Cal Model Jury Instruction On Due Care, 73 “Zone of Danger” Rule, 58 Campo v Scofield, 299, 301 , 302, 303 Canada Law of, 148, 162, 165, 169, 170, 173–176 Cooper v Hobart, 173, 178 Cardozo, Benjamin, J., 52, 56, 151 , 152, 155, 156, 161 , 162, 232, 234, 235, 236, 273, 341 Care See Due Care Carnap, Rudolf, 422 Carroll Towing, United States v., 52, 54, 55, 72, 75 Due Care Standard, 73 Cal Model Jury Instruction, 73 Caterpillar, Inc v Shears, 287, 291 Causation, 228 See Also Epidemiology Alternative Causes, 374 Assumptions of Conduct-Causation Independence, 387–388 But-For, 208 Epidemiology, as Proof of, 385 General, 361 –362, 371 , 385 Proximate, 335 Long-Latency Periods, and, 373 Quantitative Risk, Employing, 358 Reductionist Views of, 336 Specific Causation, 362, 368, 371 , 373, 385 Statistical Evidence of, 356 Choices See Also Risk Maximizing Net Benefits, 296 July 25, 2005 Index Personal, 295 Socially Beneficial, 296 Cicero See Roman Law Civil Code Nations See Also Specific Countries; Collective Rights, Collective Actions Causation, 409, 417–420 Causation, “But for”, 405 Causation, General, 415–417 Causation, Specific, Alternative Explanations and, 420–421 Epidemiology Cohort Studies and, 411 Specific Causation and, 411 –415 Products Liability, 404–408 Restatements of Torts, as Informed by, 404, 421 , 424 Toxic Substances, Exposure to, 408–411 Universalization, 404 Civil Law Common Law, as Contrasted with, 404 City of Cincinnati v Baretta, U.S.A., 224 Coase, Ronald H., 46 The Problem of Social Cost, 46 Colby, Thomas B., 343, 345 Coleman, Jules L., 47 Collateral Source Doctrine/Rule, 83, 92, 94, 97, 99 See Also Insurance Collateral Sources, 83, 84 New Treatment of, 106–110 Make-Whole Requirement/Norm, 97, 102 Administrative Costs, 98 Expenses of, 99 Non-Offset Approach, 94, 95–97, 99–100 Full Recovery Under, 99 Offset Approach, 94 Statutes, State, 100 Subrogation, 94 Administrative Costs of, 99 Collective Actions and Collective Rights Ancien Regime, France, 435 Associations, Limitations on, 430, 436 Civil Codes Chilean, 429 French, 429 Code of Communes, France, 462 Collective Rights, 427–437 Collective Rights, Colombian See Popular Action, Below 18:39 P1: irk 0521851367indB CB915/Madden 521 85136 X July 25, 2005 Index Collective Rights, French, 453–458, 459–470 Contraventions de Grande Voire, 454, 470–474 Droit Collectif, France, 432–434, 453 Interet Collectif, 435 Referes Administratifs, 477, 478 Plein Contentieux, 456, 468 Pretium Affectionis, 466 Recourmingrs de Plein Contentieux, 464, 466 Recours de Pleine Juridiction, 456 Recours Pour Exces de Pouvoir, 455, 459, 468, 469 Restituio in Integrum, 455 Colombia, 428, 437–444 Constitution Colombian, of 1991, 428, 432, 437 French, 478 France, 428 Injunctions, France, 475 Judicial Powers, French, 474–479 Maximum Court, 430 Napoleonic Code, 430 Nuisance, Public and Private, France, 431 Pericles, 450 Popular Action, Colombian Definition and Purpose, 438 Collective Rights Protected by, 444–447 Contingent Damages and, 429 Individual Rights vs Collective Rights, 447–452 Property Rights, 435 Roman Law, 427 Scholarly Contributions, 427, 428, 429, 434, 435, 448, 449, 478 Statutes Colombian, 428, 430, 432–434, 437 “Subjective Rights”, Colombian “Any Person” and, 436 Environmental Actions and, 428 Collingswood, R.G., 49 Colombia See Collective Rights, Collective Actions Common Law, 262, 336 Common Law Systems, 264, 288, 344 Interlocutory Work of Courts, 265 No-Duty Rules, 286–290 No-Duty Results, 288 Comparative Fault, 70, 98 485 Comparative Responsibility, 72, 353 See Also Apportionment of Liability; Comparative Fault Consumer Product Safety Commission, 328 Consumer Products, 66 Contingent Fees, 101 , 110 Contract Disclaimers, 251 Distinctions with Tort, 228, 240 Freedom of, 228 Notice of Claim, 251 Privity, 228 Sequential Contracts, 237 Statutes of Limitation, 251 Third-Party Beneficiaries, 228, 232–236 Contribution, 72 See Also Apportionment of Liability Contributory Negligence, 71 Cooper v Hobart See Canada, Law of Corporations See Agents Corrective Justice, 12, 13, 82, 87, 106, 146, 147, 148, 266, 268, 359 See Also Justice, Rectifiction Deterrence, and, 13 Efficiency, vs., 12 Morality, and, 12 Cost-Benefit Analysis, 77 Costs Externalization of, 115 Internalization of, 117, 121 , 339 Courts See Judiciary Cross Subsidization, 248 See Also Efficiency Customary Law, 36–39 Acts, Positive, 38 Assault, 38 Ceylon, Law of, 36 Culpa, 38 Duties, Landlord to Tenant, 39 Duties, Positive, 38 Intent, 38, 39 Lex Aquilia, 37, 38 Nuisance, Private, 39 Nuisance, Public, 39 Roman-Dutch Law, 36 Schools of Writers, 37 Security, Payment of, 39 18:39 P1: irk 0521851367indB CB915/Madden 521 85136 X 486 Customary Law (cont.) Social Cost, 39 Trespass, Animals, 38 Unjust Enrichment, Avoidance of, 38 Damages See also Emotional Distress Compensation Over-compensation, 100, 106 Under-compensation, 100 Counsel Fees, 101 Relative to Pain and Suffering, 101 Recovery Reduced By, 96, 98 “Double Counting,” Avoidance of, 339 Earning Power, 89 Economic Loss, 86, 87, 159, 160, 162, 163, 229 Pure, 189, 191 , 193, 274 Environmental, 44, 193, 197 Future Losses, 93 Governmental, 197 Grief, 89 Legal Representation, 344 Loss, Calculation of Expected, 241 Lost Income, Inadequate, 89 Non-Pecuniary Loss, 96 Intangible Loss, 97 Pain and Suffering, 82, 98, 106 Optimal Awards, 113 Out of Pocket Losses, 95, 97 Protection Against Future, 94 Risk of Overcompensation for, 98 Permanent Injury, Insurance for, 94 Property, 86, 229 Services, 344 Strategic Behavior, Effect of, 47 Uninsured Damages, Recovery of, 98 Wrongful Death, 104 Elimination of Monetary Ceilings, 104 Daubert v Merrell Dow Pharmaceuticals, 356, 367, 368, 394, 423, 424 Decreased Chance of Survival See Apportionment of Liability Defenses See also Comparative Negligence Delgado, Richard, 357 Denning, J., 176, 177, 179, 184, 290 Desiano v Warner-Lambert Co., 257 July 25, 2005 Index Deterrence See also Incentives Generally, 16, 82, 84, 91 , 100, 106, 177 Optimal, 87, 395 Socially Wasteful Projects, 116 Unconsented-to Taking, 16 DES, 372, 373 Devlin, J., 252 Dignitary Torts, 86 Defamation, 86 Invasion of Privacy, 86 Doggett, J., 42 Doll, Sir Richard, 421 Diplock, Lord, 179 Donohue v Stevenson, 144, 151 Dorset Yacht, Home Office v., 179 Drugs, Prescription, 377 Oral Contraceptives, 378 Du Parcq, J., 289 Due Care See also United States v Carroll Towing, 72, 75 Cost-Justified Precautions, 111 , 112, 116, 118, 121 , 238 Costs, Private, 239 Costs, Reduction of Expected, 112 Costs, Social, 239 Efficient Precautions, 117 Optimal Care, 112, 118 Reduction of Accident Costs, 116 Durkheim, Emile, 14 Dutch-Roman Law See Customary Law Duty See Also Judiciary, Common Law Systems, Risk, Risk Information, Religion Causation, and, 148 Correlative Right, and, 154–164 Defined, 272 Disintegration of, 145, 177, 271 Duty Rules v No-Duty Rules, 272–275 Proposal for, 283–286 “Enabling” Tort, as Creating, 275–280 Entrustment, 280 General Conception of, 144–149, 178–179, 184–186 Instrumentalism, and, 184, 185 Land Occupiers, 56, 57, 297 Misfeasance, and, 274 Negligence, and, 148 Neighbor Principle, 144, 165 18:39 P1: irk 0521851367indB CB915/Madden 521 85136 X July 25, 2005 Index Nonfeasance or Omission to Act, 274 No-Duty Rules, 189, 272, 296 Policy, and, 176–178, 179–184 Proximate Cause, and, 148, 150 Proximity, Requirement of, 162 Reasonable Care, and, 148 Rescue, 277 Relation Between Parties, 148, 184 Risk Creation/Enhancement, 277, 280–283 Special Relationships, Definition of, 196 Status-based, 56 Tort vs Contract, 240 Two-Stage Test for, 164–173 Early Social Groupings Competition vs Cooperation, 20 Economic Imperatives of, 16–21 Labor, Specialization of, 20 Surplus, Accumulation of, 20 East River Steamship Corp v Transamerica Delaval, Inc., 250 Efficiency, Economic, 334 See Also Efficiency, Economic; Deterrence, United States Efficiency Norms and, 13, 329 Deterrence, and, 12, 16 Efficient Risk Regulation, 116 Enterprise Control of Agents, 137–139 Inefficient Risk Taking, 112 Loss Spreading, as Furthering, 334 Vicarious Liability as Inefficient, 113, 114 Eisenberg, Theodore, 191 Emotional Distress, 87, 274 Bystander Rule, 56, 58, 191 , 192 Impact Rule, 192 Mishandling of Corpses, 59 “Pure” Emotional Distress, 336, 344 “Special Category” Exception, 59 Telegrams, 59 “Zone of Danger”, 58, 192 Environmental Protection Agency, 416, 421 Enterprise Liability, 69 Epidemiology See Also Causation; Civil Code Nations, 356, 365 Association, as Proving Causation, 376, 383 Bias, 376 Case-Control Study, 375, 378 Causal Inference, Appropriateness of, 392–395 Cohort Study, 375 487 Confidence Intervals, 382 Confounding, 376, 380, 381 Disease Status, Ascertainment of, 379 Dose, Appropriate, 378 Dose, Biologically Relevant, 376 “Hill” Criteria, 383, 392, 418 Limits of, 369–371 , 384 Methodology, 375 Observational Study, 375, 380 Non-Differential Misclassification, 379 Prospective Study, 377 Random Chance, 376 Random Error, 381 , 382 Recall Bias, 378 Relative Risk, 366, 368, 369–371 , 375, 381 , 384, 385 Reliability, Daubert and Retrospective Studies, 377 Escola v Coca Bottling Co., 52, 54, 55, 66–68, 69–70 Europe See Civil Code Nations; Specific Countries Evidence Expert, 213 Farber, Daniel A., 361 –362, 363, 367 “Most-Likely Victim” Rule, 360–361 , 367 Fellow Servant Rule, 57 Feyerabend, Paul, 423 Finley, Lucinda M., 368 Food and Drug Administration, 258 Foreseeability Particular, 59 France See Collective Rights, Collective Actions Frank, Jerome, J., 347 Functionalism, 333 Fuller, Lon, 189 Georgia, 304 Germany Adenoma, 406 Birth Defect Litigation, 405 Wood Preservatives, 407 Glanzer v Shepard, 32, 234 Great Britain Law of, 165, 170 Green v General Petroleum Corp., 68 18:39 P1: irk 0521851367indB CB915/Madden 521 85136 X July 25, 2005 488 Greenman v Yuba Power Products, 244, 302, 313 Gregory, Charles W., 81 Gun Manufacturers, 60 Hand, Learned, J., 55, 341 , 342 Hand Formula for “Breach” Of Duty, 55 Harm Accidental, 295 Hayek, Friedrich A., 241 Hedley, Byrne & Co., Ltd v Heller & Partners Ltd., 252 Hegel, George Wilhelm Friedrich, 49 Hempel, Carl, 422, 423 Henningsen v Bloomfield Motors Co., 243 HIV Exposure, 58 Higgenbotham, J., 43 Hill, Austin Bradford See Epidemiology Hobbes, Thomas, 241 Holmes, Oliver Wendell, J., 60–61 , 77, 153 The Common Law, 60 Huset v J I Case & Co., 247 Hylton, Keith N., 338 Immunities, 57 Charitable Entities, 57 Family Members, 57 Governmental, 189, 191 Municipalities, 57, 69 IARC (WHO), 422 INS v Forty-Eight Insulations, Inc., 43 Incentives See also Deterrence Correct, 339 Cost-Effective Precautions, 112, 117 Efficient Incentives, 117 Incomplete Loss, Coverage Effect of, 246 Inefficient Incentives, 115 Inducing Due Care, 118 Safety, 69 Socially Valuable Projects, 116 Tied to Outcomes, 118 To Hire Judgment Proof Agents, 135–136 Vicarious Liability, 114 Independent Contractors See Agents Inefficiency See Efficiency Information See Risk Injunctions See Remedies, Equitable Instrumentalism, 359 Insurance See also Collateral Source Rule; Damages Disability, 89, 108 Long-Term, 89 Short-Term, 90 Duplicate Recovery, 92, 93, 97 Enterprises, Insurance by, 82 First-Party (Private), 82, 83, 84, 85, 92, 96, 97, 98, 99, 100, 106, 107–108 Transfer of Tort Rights to, 84 Health, 88, 93, 108, 350 Medical Care, 93 Health or Worker’s Compensation, 92 Life, 84, 88, 102–106 Anomalous Treatment of, 103 Contractual Subrogation, 103 No Equitable Rights of Subrogation, 103 Social, 82, 83, 85, 92, 100, 106 Non-Offset Approach, 91 , 92 Offset Approach, 91 , 100–102 Subrogation, 92, 93, 107–108 Administrative Costs, 100, 106 Future, 93, 94 No-Reimbursement Rule, 97 Waiver of Right to Future Reimbursement, 94 Third-Party or Primary Insurance, 94 “Tort Insurance Premium,” 101 Income Regressive Impact, 101 Wealthier Claimants, 101 Worker’s Compensation or Health, 92 Italy, 419 Epidemiologists, Italian, 412, 418, 419 Penal Code, Reformation of, 419 Venice Lagoon, 416 James, Fleming, Jr., 81 , 299, 301 Jasanoff, Sheila, 423 Joint Liability See Remedies-Damages Judiciary See Also Jury Duty, a Continuum of, 272 Duty, as Question of Law for, 270 Duty, Facilitating or Restraining, 271 –272, 290–294 18:39 P1: irk 0521851367indC CB915/Madden 521 85136 X July 25, 2005 Index No-Duty Rules, 270, 290, 292 Law Making, 262, 263, 271 Jury See Also Judiciary, Common Law Systems Decision Making, 262, 291 Law-Making Role, 266 Scope of Liability, as Question of Fact for, 270 Justice See Also Corrective Justice Distributive, 266 Kant, Immanuel, 49, 267 King, Joseph H., 353 Laborers Local 17 v Phillip Morris, Inc., 252, 254, 257, 258, 259, 260 RICO, and, 254, 258 Lakatos, Imre, 422 Land Occupiers, Duty of, 56, 60, 191 Invitees, 188 Licensees, 188 Reasonable Care, 188 Trespassers, 188 Landes, William M., 371 , 374 Last Clear Chance, 71 Laudan, Larry, 423 Law and Economics, 358, 395 See Also Efficiency, Economic Levi, Edward, 334 Levmore, Saul, 363 Liability See Also Customary Law; Roman Law; Apportionment of Administrability, Considerations of, 192 Automobile, 87 Complex Designs, for, 197, 202 Correlative Structure of, 147 Environmental, 223–225 Public Nuisance, 223 Fault-Based, 187 Governmental, Design Choices of, 218–222 Discretionary Functions, 222 Institutional, 201 Judicial Competence/Expertise, 187, 196, 197, 203 Judicial Limitations, 196 Market Share, 355 Mass Tort, 83 See also Toxic Torts Medical Malpractice, 191 , 214–218 489 Passive Plaintiffs, 238 Polycentric Considerations, 189, 192, 199 Products See Products Liability Unilateral Accidents, 238 Lloyd, Dennis, 29 Louisiana ex rel Guste v M.V Testbank, 43 Loss Distribution, 81 , 83, 84, 88, 94, 99, 100, 101 , 104, 105, 106 Insurance Pool, Restriction to, 177 Means-Test Tort Recovery, 105 Public and Private, 91 Luque v McLean, 302 MacPherson v Buick Motor Co., 52, 56–58, 151 , 263, 266, 300 Privity Rule, 57 Maine, Henry Sumner, 34 Makdisi, John, 363 Maryland, 300 McCarty v Pheasant Run, Inc., 74 McGarity, Thomas O., 369 Medical Malpractice, 101 Melamed, A Douglas, 41 , 46 Merrell Dow Pharms., Inc v Havner, 368 Mesopotamian Law, 21 –23 Codification of Customary Law, 14 Hammurabi, 22 Lipit-Ishtar, 22 Ur-Nammu, 22 Micallef v Miehle Co., 302 Michigan, 323 Mill, John Stuart, 335 Misfeasance Misfeasance/Nonfeasance Distinction, 236 Misrepresentation Disclaimers of Liability, 257 Negligent, 160 Privity, 251 –260 Tobacco Advertising, 253, 256 Health Plans as Plaintiffs, 253, 256 Proximate Cause, 255 Smokers, 256 Standing, 255 Subrogation, 254, 259 Moch v Rensselaer Water Co., 234, 235, 236 Morality See Corrective Justice Napoleonic Code, 37 National Research Council, 416 18:42 P1: irk 0521851367indC CB915/Madden 521 85136 X July 25, 2005 490 Negligence Doctrine, 149–153 Injury and Risk Creation, 149 Wrong Done and Wrong Suffered, 149 New Jersey, 58, 258 New York, 44, 299, 302 Duty, and, 335 New York Times v Sullivan, 55 Nonfeasance See Misfeasance Norms See Also Early Social Groupings; United States, Efficiency Norms and Allocative Efficiency, 17 Generosity, 17 Bad, 15 Contract Based Social Interaction, 16 Cooperative Behavior, 19 Economic, 16 Good, as, 14, 15 Knowledge, Comfort, Stability, 14 Post-Hoc Rectification, as, 15 Social, 14 Social Compact, as, 15 Status Quo Ante, 16 Waste Avoidance, 16, 18 N.R.D.C v E.P.A., 416 Nuisance, 239, 240 See Also Liability, Environmental Occupational Safety and Health Admin., 328 Ohio, 224 Organizations See Agents Efficient Regulation of, 121 Palmer v Massey-Ferguson, Inc., 301 Palsgraf v Long Island Railroad Co., 55, 151 , 155, 156, 164, 270, 273 See also Andrews, J Pareto, Vilfredo, 20 Parsons, Wes, 41 Pasley v Freeman, 255 People Express Airlines v., 59 Consolidated Rail Corp Peters, J., 243, 245 Peto, Richard, 421 Philosophy, Hellenic, 26–33 See Specific Philosphers Pike v Frank G Hough Co., 300 Plato, 29, 31 , 32 Protagoras, 30 The Republic, 30, 32 Polanyi, Karl, 18 Polinsky, A Michael, 46, 338 Popper, Karl, 420, 422, 423 Porat, Ariel, 363 Posner, Richard A., J., 74, 338, 371 , 374 Powers, William, Jr., 269 Pragmatism, Legal, 13 Preemption, 336 Privity See Also Contract; Tort System; Misrepresentation Two Senses of, 230–232 Products Liability, 54, 65, 83, 101 , 189, 191 , 197, 203–214, 229, 239, 297 Category Liability, 211 Cost-Benefit Analysis, 248, 329 Defective Design,206, 210, 269, 306, 307, 314 Defective Manufacture, 307 Defective Warnings, 208, 209, 307 Design Choices, 189, 297 Design Duties vs Warnings Duties, 297, 305–312, 323–324 Defenses, 72, 209 Disclaimers and Limitations, 229 Economic Loss vs Property Damage, 242–251 Information Liability Shield, Proposed, 297–298 “Behavioral” Problem, 328–330 “Bloated Agency” Problem, 330 “Bystander” Problem, 297 “Causation” Problem, 327 “Fullness” Problem, 326–327 Inherent Risks, 310 See Also Unavoidably Unsafe Products Inherently Dangerous Products, 312 Latent Risks, 310 Patent Danger Rule, 297, 298–305 Privity, 242 Strict Products Liability, 242, 342 Unavoidably Unsafe Products, 309, 311 Warnings Duties, 307 See Also Unavoidably Unsafe Products, Inherently Dangerous Products Alcohol, 309, 311 , 312 Drugs, 309, 311 , 312 Restatement History, 312–323 Tobacco, 309, 311 , 312 18:42 P1: irk 0521851367indD CB915/Madden 521 85136 X July 25, 2005 Index Preemption, 212, 336 Proportional Liability See Also Apportionment of Liability Asymmetry of, 388–392 Errors as Producing Errors in Association, 388 The Case Against, 385–387 Prosser, William L., 232, 245, 305, 313, 314 Protagoras, 30 Punitive Damages, 72, 336–337, 338 See Also Remedies, Damages Cost-Benefit Analysis, 342 Multiplier, Function as, 338–340, 349 “Pinto” Case, 341 , 342 Private Attorneys General, Function as, 337–338, 349 Proposals for, 346–350 Recovery of Non-Recoverable Damages, Function as, 343–345, 349 Righting Private Wrongs, Function as, 345–346, 349 Tragic Choice, Function as, 340–343, 347, 349 Qualcast (Wolverhampton) Ltd v Haynes, 289 Rabin, Robert L., 275, 277, 279 Radiation, 374 Recklessness, 71 Rectification See Also Corrective Justice, Justice Forced Taking, 16 Transfer of Wealth, 16 Unjust Enrichment, 16 Reductionism, 334 Courts, and, 335 Federal Courts, and, 335 Supreme Court, and, 335 Regulation, ex ante, 330 Judicial Oversight, vs., 330 Religion Aid/Rescue, Duty to, 25 Covenant, Code of the, 25 Talmud, 24 Torah, Law of the, 24–26 Yahweh, 24 Remedies, Damages See Also Damages; Punitive Damages Joint and Several Liability, 72, 75 Non-Economic Loss, 72 491 Remedies, Equitable Injunctions, Environmental, 45 Responsibility Individual, 296 Restatement (Second) and (Third) of Torts See Subject Matters Robinson, Glen O., 357 Rosenberg, David, 364 Risk, 116 Choices, Cost-Effective, 296 Choices, Informed, 296 Direct Costs, 116 Imposers, 117 Information, 295 Regulation of, 117 Risk Distribution, 69 Risk Information See Also Risk Availability of, 296 Complete, 296 Duty, and, 296, 324–326 Risk-Utility Analysis See Cost-Benefit Analysis Roberts, J.M., 20 Robins Dry Dock & Repair Co v Flint, 44 Roman Law Actum Injurium Cicero, 34 Cicero, On Moral Duties, 34 Delicts, 34, 35 Deterrence, 34 European Law, as affecting, 404 Justinian, Institutes of, 35 Nuisance, Private, 35 Trespass, 35 Roman-Dutch Law See Customary Law Rosenberg, David, 359, 360–361 Rothman, Kenneth J., 384, 422 Rowland v Christian, 56, 193 Rylands v Fletcher, 61 Sanborn, J., 247 Saratoga Fishing Co v J M Martinac & Co., 248 Schroeder, Christopher H., 359 Schneider Nat’l, Inc v Holland Hitch Co., 43 Schwartz, Gary T., 191 , 192, 395 Seely v White Motors, 242, 243 Selikoff, Irving J., 377 18:43 P1: irk 0521851367indD CB915/Madden 521 85136 X July 25, 2005 492 Sept 11, 2001 Victim Compensation Fund See Victim Compensation Fund, Sept 11, 2001 Settlement, 93, 95, 99 Sharkey, Catherine M., 338 Shavell, Steven, 338 Sindell v Abbott Laboratories, 354, 357 Smith, Jeremiah, 54, 61 , 66 Smith v Lockheed Properties., 69 Social Hosts, 60 Social Security, 350 Sociology Sociological Expectations, 76 Socrates, 27, 28, 29, 30, 31 , 32 Ideal State and Ideal Man, 30 Justice, 27 Somervell, J., 289 State Farm Mut Ins Co v Campbell, 345, 346, 348 Stein, Alex, 363 Strict Liability, 239 See Also Liability Blasting, 239 Concussion, 239 Explosives Carrier, 68 Passive Plaintiffs, 246 Subrogation Full, 84 Sugarman, Steven D., 42 Supreme Court, United States, 336 Causation, Reductionist Views of, 336 Talmud See Religion Tarasoff v Board of Regents, 52, 53 Texas, 367 Thalidomide, 372 Tobriner, J., 248 Torah See Religion Tort Liability, 40 Crudity of, 395–396 Free Market Economy, 111 , 116, 117 Optimal Rules, 117 Defined, 117 Risk Imposers, 111 , 116 Strangers and Neighbors, 239 Tort Reform, 195, 350 Statutory Intervention, as, 334 Tort System See Also Corrective Justice; Efficiency Federal Court Intervention, 335 Direct Cost, 86 Interaction with Contract, 237 Multiplicity of Jurisdictions, 263 Privity in, 237–240, 251 Supreme Court, and, 335 Tort-Contract Divide, 240–242 Toxic Torts, 58 Toxic Injury, 66 Transportation Insur Co v Moriel, 42 Traynor, Roger, J., 52, 54, 55, 69–70, 81 , 201 , 202, 242, 243, 244, 245, 249, 313 Trichopoulos, Dimitrios, 421 Ultramares v Touche Ross, 252 Ultra-Hazardous Activities See Strict Liability Ultramares v Touche, 236 Uniform Commercial Code See Contract Union Oil Co v Oppen, 41 United States, Efficiency Norms and, 16, 40 Corrective Justice and Economics, 41 Judicial Adoption, 42 United States v Carroll Towing, 72, 75 Utility Social Responsibility as, 296 Vandall, Frank J., 269 Vicarious Liability, 267 See Also Agents Victim Compensation Fund, Sept 11, 2001, 54, 63–65 Fund-type recoveries, Other, 65 Victim Fault, 296 Responsibility, 66 Wagon Mound (No 1), 153–154, 155 Weinstein, Jack, J., 360 Whalen v Union Bag & Paper Co., 45 Whitehead v St Joe Lead Co., 42 Workers Compensation, 53, 54, 60–63, 71 , 87, 94 As Absolute Liability, 87 Wright, Richard W., 362, 419 18:43