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The Significant Association Between Punitive and Compensatory Damages in Blockbuster Cases: A Methodological Primer

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  • Theodore Eisenberg
  • Martin T. Wells

Abstract

This article assesses the relation between punitive and compensatory damages in a data set, gathered by Hersch and Viscusi (H‐V), consisting of all known punitive damages awards in excess of $100 million from 1985 through 2003. It shows that a strong, statistically significant relation exists between punitive and compensatory awards, a relation that replicates similar findings in nearly all other analyses of punitive and compensatory damages. H‐V's claim that no significant relation exists between punitive and compensatory awards in these data appears to be an artifact of questionable regression methodology.

Suggested Citation

  • Theodore Eisenberg & Martin T. Wells, 2006. "The Significant Association Between Punitive and Compensatory Damages in Blockbuster Cases: A Methodological Primer," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 3(1), pages 175-195, March.
    • Handle: RePEc:wly:empleg:v:3:y:2006:i:1:p:175-195
    DOI: 10.1111/j.1740-1461.2006.00067.x
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    Cited by:

    1. Alison F. Del Rossi & W. Kip Viscusi, 2009. "The Changing Landscape of Blockbuster Punitive Damages Awards," American Law and Economics Review, American Law and Economics Association, vol. 12(1), pages 116-161.
    2. David A. Hyman & Bernard Black & Kathryn Zeiler & Charles Silver & William M. Sage, 2007. "Do Defendants Pay What Juries Award? Post‐Verdict Haircuts in Texas Medical Malpractice Cases, 1988–2003," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 4(1), pages 3-68, March.
    3. Michael Heise, 2013. "Empirical Analysis of Civil Litigation: Torts Trials in State Courts," Chapters, in: Jennifer H. Arlen (ed.), Research Handbook on the Economics of Torts, chapter 1, pages 11-30, Edward Elgar Publishing.
    4. Roth, Louise Marie, 2023. "Defensive versus evidence-based medical technology: Liability risk and electronic fetal monitoring in low-risk births," Social Science & Medicine, Elsevier, vol. 317(C).
    5. W. Kip Viscusi & Benjamin J. McMichael, 2014. "Shifting the Fat‐Tailed Distribution of Blockbuster Punitive Damages Awards," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 11(2), pages 350-377, June.
    6. Dove John A. & Dove Laura R., 2020. "US State Tort Liability Reform and Entrepreneurship," Review of Law & Economics, De Gruyter, vol. 16(3), pages 1-45, November.
    7. Theodore Eisenberg & Thomas Eisenberg & Martin T. Wells & Min Zhang, 2015. "Addressing the Zeros Problem: Regression Models for Outcomes with a Large Proportion of Zeros, with an Application to Trial Outcomes," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 12(1), pages 161-186, March.

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