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Pain and Suffering Damages

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Pain and Suffering Damages
ciceronianus
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quote post #31
Posted Jul 8, 2009 - 10:42 AM:

My dear Benkei, I'm not certain the Netherlands is quite the legal paradise you apparently believe it to be.  You have focused on civil law, I know, but your system of criminal justice sounds terrifying.  Apparently, no juries since Napoleon (not the most lenient fellow) was forced out, "judges" appointed by the government, generally no trials involving witnesses or testimony, decisions generally based on written reports of law enforcement?  I'll take our criminal justice system any day.  Alas for an American who gets into trouble in Holland (or Italy, for that matter).


But, of course, our system has its problems as well.   However, I think the examples you refer to are well-publicized aberrations, insignficant when compared to the number of cases being processed each day.  Crazy Roy Pearson lost his position as an administrative law judge as a result of his weird conduct, and frivilous suits are dismissed and sanctions imposed with some regularity by the courts of  the jurisdiction with which I am familiar, not to mention the sanctions imposed for such actions by the agency regulating lawyers.  Jurors are generally normal, sensible people, and not quite the gibbering, drooling members of the "common herd" some make them out to be.


We get along alright, and I'm sure the Netherlands does as well, though I would consider the possibility that it may be more in spite of, and not because of, the combination of the Roman law, German law and the Napoleonic Code it apparently operates under.



Edited by ciceronianus on Jul 8, 2009 - 12:00 PM
"Let us not pretend to doubt in philosophy what we do not doubt in our hearts."--C.S. Peirce

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quote post #32
Posted Jul 8, 2009 - 12:21 PM:

I'm going to throw a bone to the other side here only because I've often wondered why European civil justice systems seem so different from ours. I think it has to do with the liberal social security systems (healthcare, employment safeguards, disability benefits) that these countries have in place. The US has much less in terms of government assistance, and so we are forced to rely upon the courts to provide for our less fortunate. It's no secret that most plaintiffs (not all, but most) come from a lower rung on the economic ladder. I, for instance, would be very reluctant to file a suit, considering my health insurance, my disability insurance, and my generous sick leave package would leave me protected without having to chase down some other form of money.

I think Plaintiff's attorneys will be in for a rude awakening, despite their more liberal leanings, should public healthcare one day pass in the US. Medical payment recovery in lawsuits often comprise a large part of the award, and I can't see how juries will continue to award medical reimbursement if they know the provider has already been paid by Uncle Sam. I know that in Canada, where they have public healthcare, you cannot ask a jury for medical reimbursement for what the Canandian government has paid (and who is the equivalent to Uncle Sam in Canada?).

Insurance companies are our private enterprise response to the lack of government provided benefits, and as those benefits become publically provided, I think you'll see less lawsuits because the funding source for most lawsuits is the big, bad insurance company. In the end, the insurance companies fund the entire process, indemnifying their insured, paying the defense lawyers, and compensating the plaintiffs.

And really, what is an insurance company other than a pooled resource of money for use in times of crisis, much like the US Treasury has now become.
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quote post #33
Posted Jul 8, 2009 - 1:27 PM:

Benkei wrote:


The level for "frivolous" cases in the US requires a much higher level of frivolousness than in the Netherlands. I think that explains why those groups in the US in fact call it "ludicrous" cases to avoid the legal connotation. In general, these groups consider the legal notion of frivolous not sufficient and from my perspective I agree.



You ordered coffee. How about NO warning? Coffee is supposed to be hot and you're supposed to get burned if you throw it all over yourself. Entirely foreseeable.

Even so, even if I was a waiter and I accidentaly throw it over you because I trip, why should I be fiscally punished for something that's a simple accident? I don't think that all damages should be reimbursed because some damages are so accidental they are just supposed to be borne by the person who was out of luck.



They're related. Both the claims as well as the amounts are going too far. It's not only the number of claims but the height of them that causes serious additional social costs through more expensive insurance and lengthy lawsuits.



Bringing ludicrous claims is a bad thing. And my point is that nobody is responsible when shit happens. When shit happens, damages are accidental and cannot be awarded in favour of one party due to some tenuous causal claim.

If I slip and throw coffee on you I should be sueing the floor cleaner, who should sue the detergent manufacturer for making slippery soap... or maybe we can just stop and say: "damn, this happens some times, I'm terribly sorry. Let me get you a towel. Can I reimburse the costs for the dry cleaning?" And let that be the end of it. It's a matter of rational and fair behaviour. Claiming thousands of EUR or USD isn't rational or fair but greedy.



Is scalding hot coffee "non-obvious"? I think it's been hot for over 100s of years. I also doubt the woman ordered coffee for the first time as it is an acquired taste. So she most likely had a personal familiarity with the product. The analogy doesn't work in my opinion.

But the law has also grown up differently in the US than the UK and again differently than in Continental Europe. I doubt that we can claim that any of these systems are inherently defective but the US is the only country that has a publicly recognised "liability litigation crisis". Something has gone wrong there and its not about eliminating emotional damages per se for me but there certainly should be a change in sensibility with regard to the award of emotional (and punitive) damages.



Not a very accurate way of putting it I agree. It's more to do with the height of the claims that might be a a consequence of a such a mentality. It's not about what's fair or reasonable to compensate someone's damages but about punishing the other (loser).

Here are some more nice examples:

The Roy L. Pearson case. 54 million USD claim against dry cleaners who lost a pair of pants. WTF? A woman sueing an outdoor mall for being attacked by a squirrel. WTF? A journalist who climbed on a garbage truck to take pictures and fell off when it moved, suing for 50 million USD. WTF? A drug-user who sues the hospital for "allowing" a visitor to smuggle drugs to her. Really? WTF?

These are all cases that are being handled by the Courts. Admittedly, in the first there is at least a clear case of damages attributable to the dry cleaners but the amount is ludicrous. The other ones should not even be handled.

In the meantime, companies pursue aggressive legal strategies to simply scare away the competition or make a buck (think of Monster Cable). Patent trolls prefer to sue in the US because the damages are much greater there than in Europe. Let's face it, in the US, sueing is a profitable business.

And people know it. They react by placing thousands of warnings everywhere to avoid litigation.

http://www.gtlaw.com/portalresource/halkowarning[/quote]

I think one of the problems here is that you want to conflate a variety of separate ideas into the same problem.

1) There are statutory causes of action. Some parallel the common law, some are new inventions.

2) There are statutory entitlements to categories of damages. Some statutory causes of action include types of fees not traditionally recoverable, i.e. attorney's fees.

3) There are classes of damages, one of which is compensatory damages.

4) Compensatory damages, one aspect of which is pain and suffering.

Let's take each of your litigation examples in turn -

McDonald's case - Traditional negligence claim. If McDonald's was found negligent, the plaintiff was entitled to compensatory damages including pain and suffering. You seem to have a problem with McDonald's being found negligent. You also seem to have a problem with punitive damages being awarded against McDonalds.

Punitive damages are a class of damages reserved for special types of negligence claims. In such cases, you often find egregious conduct that does not rise to the level of an intentional tort, but is repugnant none-the-less and needs to be punished as such. McDonalds manufactured a product in an atypical fashion in order to save a fairly small sum of money. The average consumer would not have been aware of the additional danger that they exposed themselves to by consuming the McDonalds product as compared to other cups of coffee.

You think that McDonald's endangering its customers is "shit happening." A jury disagreed. Not only did the jury disagree, but they found that McDonald's endangering its customers for the sake of a few dollars was egregious conduct and needed to be specially punished.

Now we can sit here in retrospect, knowing nothing of the case or the evidence presented to the jury, and condemn the jury verdict. If this is your idea of productive time, feel free. The fact is, you do not have sufficient resources to either defend or condemn what the jury did. All you can do is react to what limited information was presented to you via media.


The Pearson Case - Invoked as a typical example of crazy litigation in the US. The defendants in the case withdrew their motion for attorney's fees. I wont go through Pearson's cause of action or the basis for his demands. Suffice it to say, he dug his own grave. If you think the entire system needs to be changed to respond to this one case, there is not much to discuss. Saying that you are having an over reaction would be too kind.

Importantly, Pearson lost at every level. He was not awarded what he demanded.

The squirrel and outdoor mall - A Chicago case that was dismissed with prejudice on the complaint. It never even went to trial.
http://www.onpointnews.com/docs/squirrel2.pdf


Reporter and garbage truck - Can't find it easily. If you give me a reference, I will check it out.


Drug user case - Can't find it. Please provide a reference.


California Proposition 65 - http://www.oehha.org/prop65/law/P65law72003.html

The sign requirement is a statutory invention that turns out to be poorly conceived. You don't like it? Have California vote it away. This cause of action and the class of plaintiffs entitled to sue to enforce the law was a legislative creation and reflects in no way upon the judicial process or the expansion of common law claims. Changing the law is the appropriate remedy, not frustrating traditionally injured plaintiffs by limiting their ability to sue.


___________

So far it seems that outrageous examples provided and identifiable have been shown to have resulted in proper results, to have been handled extrajudicially, or to be non-judicial problems. Outside of shock value, it is unclear what these examples provide to the conversation in terms of showing that pain and suffering is an unwarranted class of damages.

The legal system regularly deals with claims that have no legal or factual basis and dismisses them. What more efficient method can you imagine than a motion to dismiss the complaint coupled with a motion for sanctions and/or a suit for malicious prosecution/suit?

You also collapse accident with negligence. If in fact something is just an accident, the costs don't change. If you were non-negligent, you don't have to pay. The issue as to where accident ends and duty/negligence begins is sometimes a legal question and can be decided out of hand by a judge and sometimes requires a factual analysis.

_________

One thing I am a bit surprised by is that no one has mentioned defendants purchasing insurance. Most tort reform is the baby of two categories of people - those who do bad things and have assets and those who insure those who do bad things.

If someone is totally removed from the impact of their actions, what cause do they have not to do them? The major party that gets nailed with pain and suffering damages is the insurance company. Any secondary benefit of negligence law is negated by the presence of insurance companies. Because making the insurance companies bear the cost of negligence does not have the secondary benefits of making the negligent party bear the costs of their negligence, the insurance companies stand in a unique position to argue away the equity of making the defendant pay.

If someone wanted to argue (as is often the case) that where someone is engaged in a public good or public necessity (such as driving or providing medical care), but the cost of insurance had become prohibitively expensive as a result of a specific type of damages such that people started either not carrying insurance or refraining from the activity, then I can imagine reasonable arguments for limiting damages for the benefit of society. I think there are other solutions to such a problem, but that is for a different response.
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quote post #34
Posted Jul 8, 2009 - 1:31 PM:

Hanover wrote:
I'm going to throw a bone to the other side here only because I've often wondered why European civil justice systems seem so different from ours. I think it has to do with the liberal social security systems (healthcare, employment safeguards, disability benefits) that these countries have in place. The US has much less in terms of government assistance, and so we are forced to rely upon the courts to provide for our less fortunate. It's no secret that most plaintiffs (not all, but most) come from a lower rung on the economic ladder. I, for instance, would be very reluctant to file a suit, considering my health insurance, my disability insurance, and my generous sick leave package would leave me protected without having to chase down some other form of money.

I think Plaintiff's attorneys will be in for a rude awakening, despite their more liberal leanings, should public healthcare one day pass in the US. Medical payment recovery in lawsuits often comprise a large part of the award, and I can't see how juries will continue to award medical reimbursement if they know the provider has already been paid by Uncle Sam. I know that in Canada, where they have public healthcare, you cannot ask a jury for medical reimbursement for what the Canandian government has paid (and who is the equivalent to Uncle Sam in Canada?).

Insurance companies are our private enterprise response to the lack of government provided benefits, and as those benefits become publically provided, I think you'll see less lawsuits because the funding source for most lawsuits is the big, bad insurance company. In the end, the insurance companies fund the entire process, indemnifying their insured, paying the defense lawyers, and compensating the plaintiffs.

And really, what is an insurance company other than a pooled resource of money for use in times of crisis, much like the US Treasury has now become.


Sadly, I think you are right. Get a public entity on the defense side and you'll see all sorts of regulations/legislation about who is entitled to what. Pain and suffering will be a thing of the past because people would much rather see other people suffer without compensation than pay higher taxes to compensate a person for their suffering.

“If a person truly believes that God is good and that everything God does is good, that person can’t be sad. Sadness is actually a sign of atheism.” The Baal Shem Tov

I must be the biggest atheist of them all.
ciceronianus
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quote post #35
Posted Jul 8, 2009 - 2:20 PM:



Hanover wrote:
I think Plaintiff's attorneys will be in for a rude awakening, despite their more liberal leanings, should public healthcare one day pass in the US. Medical payment recovery in lawsuits often comprise a large part of the award, and I can't see how juries will continue to award medical reimbursement if they know the provider has already been paid by Uncle Sam. I know that in Canada, where they have public healthcare, you cannot ask a jury for medical reimbursement for what the Canandian government has paid (and who is the equivalent to Uncle Sam in Canada?)..


 


You may be right.  I'm not sure how public healthcare will be set up.  But, wouldn't you think the government would have some sort of recourse against the tortfeasor, for amounts paid for his/her/its victim's medical expenses?  Maybe the government would become a necessary party to any personal injury action.  Would this be all that different from the role subrogated insurers already play in the process?


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quote post #36
Posted Jul 8, 2009 - 2:56 PM:

Hey guys, don't get me wrong. The US has been a great innovator in the area of human rights law and privacy law that I believe were brilliant developments. More the shame that civil rights are being curtailed nowadays.

Part of the particular discussion I am having is also a product of translating between law systems that puts us at opposite ends. You actually value the decision of a jury more than any other opinion. To me, a jury just comes up with another opinion like any other, with no more force than mine or yours. In fact, less force, because they are mostly laymen with limited knowledge of the law. I am not at all impressed with jury verdicts in that respect (but then I am not very impressed with a lot of rulings in the Netherlands either, which has major problems as well but not the issue at hand).

Similar cases to the Liebeck case have been started in the UK for instance. There the cases were dismissed. More or less similar systems of law, reaching entirely different conclusions.

The main facts of the McDonalds case that led to a ruling in favour of the plaintiff were a) the coffee was scalding hot (about 10 degrees Fahrenheit more than average) and b) there were 700 cases of where people burned themselves similarly from coffee of McDonalds.

Liebeck was particularly unlucky because of the absorbent pants she was wearing and the fact that she thought opening scalding hot coffee between your legs is a good idea.

The judge called the behaviour of McDonalds callous, reckless and wilful. I cannot disagree more.

People want their coffee hot, the hotter the better. That hot water causes burns is a general known fact. The containers are relatively sturdy; no fault was found with that anyways. What was considered wilful was the fact that McDonalds maintained the coffee on a higher temperature than normal because a) it was advised because it improved the quality of the taste and b) to ensure coffee was still warm if people drive off a little bit. This is not unreasonable, even in light of 700 burns. Considering 1.35 million USD was the average daily sale of coffee. The price of a medium coffee is 1.09 USD. That's 1,24 million coffees a day.

Even if all those burns had happened in one day that would have been 0,06% of coffees sold on that day. As they were spilled over a period of 10 years, the likelihood was in fact 0,0000154%. That's the basis to assume wilful and reckless conduct? Not even NASA rockets build to a safety measure of that level.

At the same time the warning "contents may be hot" was on the cup. If it had said: "contents may cause 3rd degree burns" it would have been ok. I say; tomato tomato. Why else tell people "contents may be hot" than for the very purpose to warn them that they can get burned? Is it really significant what degree it is?

That's the same as saying that a warning on a knife "this knife is sharp" isn't enough because you can potentially bleed to death. In that case the warning should read "this knife can kill". Oh really? Certainly we are not going to assume the average consumer is THAT stupid?

Maybe it's really just the difference between the law system but this is quite simply put a flimsy claim that would get you nowhere in the Netherlands. It gets you nowhere in the UK either.

The sign requirement is a statutory invention that turns out to be poorly conceived.


This example was raised because poor laws in the Netherlands would not give grounds for frivolous lawsuits although this is entirely what everyone expects in the US. I don't even know how you would go about establishing causality and what damages you would actually be suffering as plaintiff. Yet, it is was business owners in the US expect. The reaction is alien to me.

Sadly, I think you are right. Get a public entity on the defense side and you'll see all sorts of regulations/legislation about who is entitled to what. Pain and suffering will be a thing of the past because people would much rather see other people suffer without compensation than pay higher taxes to compensate a person for their suffering.


That could be true if we had a jury system but we don't.

It's not about paying higher taxes. I really think most people in the Netherlands do not believe such pain and suffering damages should be awarded as to a certain extent we do not believe they exist in a significant causal relationship.

There has been talk of including it but in fact it is the fear of the extravagant claims in the US that has stopped us several times. We would like to include it but the very ephemeral nature of these damages makes it a rather open-ended affair.

So it is partially practical but also (as my view of the Liebeck case probably illustrates) a simple denial of the existence of significant causality.
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Benkei
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quote post #37
Posted Jul 8, 2009 - 3:13 PM:

ciceronianus wrote:
My dear Benkei, I'm not certain the Netherlands is quite the legal paradise you apparently believe it to be. You have focused on civil law, I know, but your system of criminal justice sounds terrifying. Apparently, no juries since Napoleon (not the most lenient fellow) was forced out, "judges" appointed by the government, generally no trials involving witnesses or testimony, decisions generally based on written reports of law enforcement? I'll take our criminal justice system any day. Alas for an American who gets into trouble in Holland (or Italy, for that matter).


No jury. Judges are appointed for life, which is intended to ensure impartiality. Where you get "no trials involving witnesses or testimony" is beyond me though. I am quite sure there are a lot of cases, particularly where it concerns traffic law, that are handled on the basis of written reports but those are in fact considered administrative cases in the Netherlands (only for certain types of misdemeanours).

I don't quite see why these things leads to a worse system than the US system. If we simply go by the numbers of the results, US prison population and the level of recidivism in the US in general seem to suggest differently.

What good is a system that looks better on paper but leads to worse results?

But, of course, our system has its problems as well. However, I think the examples you refer to are well-publicized aberrations, insignficant when compared to the number of cases being processed each day. Crazy Roy Pearson lost his position as an administrative law judge as a result of his weird conduct, and frivilous suits are dismissed and sanctions imposed with some regularity by the courts of the jurisdiction with which I am familiar, not to mention the sanctions imposed for such actions by the agency regulating lawyers. Jurors are generally normal, sensible people, and not quite the gibbering, drooling members of the "common herd" some make them out to be.


Of course, they are aberration and if I would live in the USA I would be far better able to give a better argument than from here. I think the main point for you to pause at for a moment would be the fact that there is talk of a "liability litigation crisis" in the US itself. That's not coming from me. The second is that similar cases are treated wildly different in the UK than in the US.

Thirdly, I pay three times as much for liability insurance if I were to take holidays in the US than most other countries. And when it comes to premiums, insurance companies don't lie. sticking out tongue

Finally, this development was already recognised in the 70s and yet it only got worse (or more pronounced with more extreme aberrations, I don't know, but activists AGAINST ludicrous lawsuits are more numerous now than in the 70s).

We get along alright, and I'm sure the Netherlands does as well, though I would consider the possibility that it may be more in spite of, and not because of, the combination of the Roman law, German law and the Napoleonic Code it apparently operates under.


Well, just Roman and Napoleon will do actually - you have half of that heritage as well: Codex Justinianus. Despite the tort system our approach to liability is quite similar for instance.

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quote post #38
Posted Jul 8, 2009 - 6:24 PM:

ciceronianus wrote:
You may be right. I'm not sure how public healthcare will be set up. But, wouldn't you think the government would have some sort of recourse against the tortfeasor, for amounts paid for his/her/its victim's medical expenses? Maybe the government would become a necessary party to any personal injury action. Would this be all that different from the role subrogated insurers already play in the process?

The Canadian procedure simply doesn't allow the tortfeasor to sue for medical bills paid under the public healthcare system. It's hard to know how the US system would be set up. Up until very recently, liens were rarely and very sporadically enforced, so healthcare insurers and medicare/medicaid never made meaningful attempts to recover amounts that were awarded to the tortfeasor. Things seem to be changing significantly now that the Medicare legislation is supposedly taking effect. This is something that will affect you because it's federal law. Basically, Medicare is requiring every insurer to report to them when they make a payment to an injured person that may have been covered under Medicare. Failure to report results in a $1,000/day fine against the insurance carrier. So, now every lawsuit where the person is either poor or over 65 is going to be impacted by these federal liens, and it may not be to a plaintiff's attorney advantage to take a case with a Medicare lien unless there's considerable pain and suffering on top of the lien.


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ciceronianus
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quote post #39
Posted Jul 9, 2009 - 8:36 AM:



Benkei wrote:




No jury. Judges are appointed for life, which is intended to ensure impartiality. Where you get "no trials involving witnesses or testimony" is beyond me though. I am quite sure there are a lot of cases, particularly where it concerns traffic law, that are handled on the basis of written reports but those are in fact considered administrative cases in the Netherlands (only for certain types of misdemeanours).


Just so you know, it's something from Lay Participation in the Netherlands Criminal Justice System by Marijke Malsch of the Netherlands Institute for the Study of Crime and Law Enforcement.  For all I know, it's inaccurate or I may have misread it.  In all honesty, I just wanted to jerk your chain a bit.



Benkei wrote:
Of course, they are aberration and if I would live in the USA I would be far better able to give a better argument than from here. I think the main point for you to pause at for a moment would be the fact that there is talk of a "liability litigation crisis" in the US itself. That's not coming from me. The second is that similar cases are treated wildly different in the UK than in the US.



Thirdly, I pay three times as much for liability insurance if I were to take holidays in the US than most other countries. And when it comes to premiums, insurance companies don't lie. sticking out tongue



Finally, this development was already recognised in the 70s and yet it only got worse (or more pronounced with more extreme aberrations, I don't know, but activists AGAINST ludicrous lawsuits are more numerous now than in the 70s).



 


Yes, I have been hearing complaints about the litigious nature of our society at least since I began practicing, which is sufficiently long ago that I try to avoid thinking of it.  And, I have run into baseless actions.  But, the great majority of them have some merit.  What disturbs me most is the high cost of litigation.  But, I doubt that getting rid of juries will solve the problems which exist in our system.[/quote]



Benkei wrote:
Well, just Roman and Napoleon will do actually - you have half of that heritage as well: Codex Justinianus. Despite the tort system our approach to liability is quite similar for instance.



 


In truth, I love the Romans.  Almost all we know of were lawyers, at some point or other.


"Let us not pretend to doubt in philosophy what we do not doubt in our hearts."--C.S. Peirce

"There is nothing so absurd but some philosopher has said it."--Marcus Tullius Cicero

"Philosophy recovers itself when it ceases to be a device for dealing with the problems of philosophers and becomes a method, cultivated by philosophers, for dealing with the problems of men."--John Dewey
 
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