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The Effect Of State Tort Reforms On Claim Filings

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  • Joan T. Schmit
  • Mark J. Browne
  • Han Duck Lee

Abstract

Currently, the U.S. Congress continues to debate the passage of a tort reform bill. Such a bill is intended to limit legal liabilities, particularly as they relate to product accidents. While passage of a federal law in the 1990s remains difficult, many states found tort reform a successful proposition a decade earlier. The intent of this paper is to add to the discussion regarding the expected effects of tort law modifications by providing some background on the most widely enacted state tort reforms, presenting results from the literature on actual and expected effects of these reforms, and presenting new empirical evidence on the efficacy of these same reforms. The results indicate that caps on non‐economic damages and imposition of fines on frivolous litigation are negatively related to the rate of tort filings, while modification of joint and several liability demonstrates a positive relationship with the rate of tort filings, and reforms of the collateral source rule and imposition of punitive damages demonstrate no effect.

Suggested Citation

  • Joan T. Schmit & Mark J. Browne & Han Duck Lee, 1997. "The Effect Of State Tort Reforms On Claim Filings," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 1(1), pages 1-17, July.
    • Handle: RePEc:bla:rmgtin:v:1:y:1997:i:1:p:1-17
    DOI: j.1540-6296.1997.tb00060.x
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    File URL: https://doi.org/10.1111/j.1540-6296.1997.tb00060.x
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    References listed on IDEAS

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    1. Viscusi, W. Kip & Zeckhauser, Richard J. & Born, Patricia & Blackmon, Glenn, 1993. "The Effect of 1980s Tort Reform Legislation on General Liability and Medical Malpractice Insurance," Journal of Risk and Uncertainty, Springer, vol. 6(2), pages 165-186, April.
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    Cited by:

    1. Mark J. Browne & Ellen S. Pryor & Bob Puelz, 2004. "The Effect of Bad-Faith Laws on First-Party Insurance Claims Decisions," The Journal of Legal Studies, University of Chicago Press, vol. 33(2), pages 355-390, June.
    2. Santolino, Miguel, 2010. "Determinants of the decision to appeal against motor bodily injury judgements made by Spanish trial courts," International Review of Law and Economics, Elsevier, vol. 30(1), pages 37-45, March.
    3. W. Kip Viscusi, 2004. "Tort Reform and Insurance Markets," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 7(1), pages 9-24, March.

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