Punitive damages
 

i'm sure many of you heard about that woman who got something like 250 mil from a lawsuit against a drug company. an article i was reading said that about 90% of that number was punitive damages, besides the fact that that seems fairly high, does anyone think that punitive damages should be donated/used for some sort of local/foreign aid? the company's getting punished wherever the money goes, and i'm not sure that little old lady needs all of it.

Re: Punitive damages
 

Thats not necessarily a bad idea. What i like most is you seem to understand that against large companies, the punitive damages need to be big enough to make the behavior that we're trying to curb -EV.

Re: Punitive damages
 

Foreign aid, no. Some have proposed giving a % of pun. damages to charity or the state or something else. better than caps I guess. I think the money should go to the lawyers tho. [img]/images/graemlins/laugh.gif[/img] [img]/images/graemlins/tongue.gif[/img] [img]/images/graemlins/cool.gif[/img]

Re: Punitive damages
 

yeah on second thought bringing that much money out of the country wouldn't be the best idea. but local aid though...

Re: Punitive damages
 

The tort law system is one method of regulating dangerous behavior by bad actors. Direct governmental regulation, criminal law for example, is another. Both have their plusses and minuses.

If you go with the tort law system, however, it is essential that the plaintiff's lawyers and the plaintiffs get at least some of the award above and beyond actual damages (medical + pain and suffering). If not, there is no incentive for the lawyer and plaintiff to play their proper role in this system of regulation.

Re: Punitive damages
 

State law capped that award at about 26 million so the point is moot.

Re: Punitive damages
 

Should be just like a fine and go to the gubmint.

A plantiff should be made whole - actual loss, pain and suffering, opportunity cost, having to wear a suit to court, whatever - but punitive damages shouldn't go to the plantiff.

Not really important whether some ancient tradition set tort or civil law apart from criminal law in this case.

Re: Punitive damages
 

[ QUOTE ]
Should be just like a fine and go to the gubmint.

A plantiff should be made whole - actual loss, pain and suffering, opportunity cost, having to wear a suit to court, whatever - but punitive damages shouldn't go to the plantiff.

Not really important whether some ancient tradition set tort or civil law apart from criminal law in this case.

[/ QUOTE ]

See Benman above:
If you go with the tort law system, however, it is essential that the plaintiff's lawyers and the plaintiffs get at least some of the award above and beyond actual damages (medical + pain and suffering). If not, there is no incentive for the lawyer and plaintiff to play their proper role in this system of regulation.

Re: Punitive damages
 

Punitive damages are very important.

In this case, the verdict is a farce.
For instance, from an article about the case:

[ QUOTE ]
Jurors who voted against Merck said much of the science sailed right over their heads. "Whenever Merck was up there, it was like wah, wah, wah," said juror John Ostrom, imitating the sounds Charlie Brown's teacher makes in the television cartoon. "We didn't know what the heck they were talking about."

[/ QUOTE ]

You awarded 250 MILLION and you didn't know what the heck they were talking about!?!?!?!?!!?!!!

natedogg

A slighty toned down approach
 

Well, if the money is going to local aid that could definitely help the jury turn a 100,000,000 million dollar verdict into a 1,000,000,000 dollar verdict since they are effectively allrecients of the award. Really the only place it could go is to the government. Perhaps to fund some beauracracy that no one cares about anyway. Also, like Benman said, t here need to be enough incentive for the plaintiff and her lawyer. Perhaps 50% of punitive damages over 5 million dollars taken as a fine would be good?

Also, be aware that in class action cases, where most large verdicts are issued, Benny's proposal would do nothing until each patient had been compensated and gotten their 5 million punitive to split with their lawyer.

The 5 milloin plaintiff punitive damages exemption would also need to rise with inflation annually.