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The Predictability of Punitive Damages

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Author Info
Eisenberg, Theodore, et al

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Abstract

Using one year of jury trial outcomes from 45 of the nation's most populous counties, this article shows a strong and statistically significant correlation between compensatory and punitive damages. These findings are replicated in 25 years of punitive damages awards from Cook County, Illinois, and California. In addition, we find no evidence that punitive damages awards are more likely when individuals sue businesses than when individuals sue individuals. With respect to award frequency, juries rarely award punitive damages and appear to be especially reluctant to do so in the areas of law that have captured the most attention, products liability and medical malpractice. Punitive damages are most frequently awarded in business/contract cases and intentional tort cases. The frequency-of-award findings are consistent with all major studies of punitive damages. Coauthors are John Goerdt, Brian Ostrom, David Rottman, and Martin T. Wells. Copyright 1997 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Legal Studies.

Volume (Year): 26 (1997)
Issue (Month): 2 (June)
Pages: 623-61
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Handle: RePEc:ucp:jlstud:v:26:y:1997:i:2:p:623-61

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  1. repec:fth:prinin:418 is not listed on IDEAS
  2. Robert Cooter, 1999. "Punitive Damages, Social Norms, and Economic Analysis," Berkeley Olin Program in Law & Economics, Working Paper Series 1047, Berkeley Olin Program in Law & Economics. [Downloadable!]
  3. Steven Shavell, 2005. "Liability for Accidents," NBER Working Papers 11781, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Darius N. Lakdawalla & Seth A. Seabury, 2009. "The Welfare Effects of Medical Malpractice Liability," NBER Working Papers 15383, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Michelle J. White, 2002. "Explaining the Flood of Asbestos Litigation: Consolidation, Bifurcation, and Bouquet Trials," NBER Working Papers 9362, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Daniel Hamermesh, 1973. "The Effect of Government Ownership on Union-Wages," Working Papers 418, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  7. Theodore Eisenberg & Henry S. Farber, 1999. "The Government As Litigant: Further Tests of the Case Selection Model," Working Papers 797, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  8. Thomas A. Eaton & David B. Mustard & Susette M. Talarico, 2005. "Punitive Damages and the Processing of Tort Claims," Law and Economics 0501002, EconWPA. [Downloadable!]
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