Posted On: March 29, 2007, 8:48 am CDT

Posted By: Bob Tukus

I do not know how the calculation of the tort tax was done, but it looks to me like there should be two calculations done: an economic valuation of a socail system with no tort system (we can imagine such a system, I suppose) and an economic valuation of the current tort system. Then subtract the two valuations. In a social system with no legal remedy for civil torts, I suspect manufacturers will take less care in designing products, polluters will run roughshod over the environment and our personal health, and salespeople will exaggerate claims of benefits for products. Injury to person and property is a pure economic loss (even though it is a financial gain for physicians and repair people). These calculations must be made to reach a reasonable assessment of an econmic tax due to the tort system.

Let's look at the benefit of the lack of a tort system: careless surgeries where egregious errors are made, reckless drivers who will suffer no financial setback in case of an accident, construction projects with shoddy workmanship, leading to building failure (as happens in hurricane and earthquake zones). Those are all pure economic losses.