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Liability

Liability. Liable or Not?. Stella Liebeck is burned from a hot cup of coffee from McDonalds and sues for $2.86 million because of “pain and suffering”. Liable or Not?.

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Liability

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  1. Liability

  2. Liable or Not? • Stella Liebeck is burned from a hot cup of coffee from McDonalds and sues for $2.86 million because of “pain and suffering”

  3. Liable or Not? • Two teenagers girls knock on the door of Wanita Young’s house to give away free cookies. She files a lawsuit for $900 stating the knocks on her door caused an anxiety attack the next day.

  4. Liable or Not? • Roy Pearson sued his local dry cleaner for loosing his pair of pants. He asked for $65 million due to mental suffering, inconvenience and discomfort.

  5. Liable or Not? • Allen Heckard sued Michael Jordan and Nike for $832 million because of the suffering caused from being commonly mistaken for the basketball player

  6. Liable or Not? • An Israeli woman sued the local television station for $1,000 for predicting the wrong weather. She was inappropriately dressed, so she got sick and missed work.

  7. Liable or Not? • Judith and Jerome O’Callaghan sued American Airlines for $100,000 because the legroom in the airplane was not as large as anticipated and they suffered back and leg pain.

  8. Settlement • The two parties in a lawsuit meet outside of court to reach an agreement. • 90% of cases end in settlement

  9. The purpose of Tort Law: • Compensate harmed individuals in a prompt and efficient way • Fairly allocate benefits to victims • Stop unreasonably dangerous conduct

  10. Preponderance of Evidence • This is the “Burden of Proof” is a civil (tort) case. • Judges & Juries must be “fairly certain” the defendant is at fault • Not as strict as “beyond a reasonable doubt”

  11. Basis for Decisions • Common Law: Previous court decisions • In the past persons who caused an injury paid $1,000, future defendants will also pay $1,000 • Statutes: State Laws • N.C. Law says persons causing injury must pay $1,000

  12. Types of Torts • Intentional Wrong: A person acts with the intent of injuring a person or property

  13. Types of Torts • Negligence: A person’s failure to use reasonable care causes harm

  14. Types of Torts • Strict Liability: The defendants activity is so dangerous that a plaintiff is not required to prove negligence or intended harm • Dangerous dogs

  15. $$$$$ Damages $$$$$ • Money awarded to the plaintiff • Compensatory Damages: the award covers the harm caused by the defendant • $3,000 covers medical bills

  16. $$$$$$$ Damages $$$$$$$ • Nominal Damages: money awarded a symbol • $1 million to demonstrate the defendant is sorry for actions.

  17. $$$$$$ Damages $$$$$$$$ • Punitive Damages: Money awarded to punish the defendant for willful, malicious acts • Defendant shoots a gun and misses

  18. Tort Reform • The movement that focuses on changing the process of settling tort claims. • McDonalds coffee case encouraged these changes

  19. Tort Reform • Some advocate changing the lawsuit process because: • The amount of money awarded is too high • Going to court is too expensive • Disputes take too long to resolve • Complicated • Injured parties should received compensation, no matter what

  20. Ideas for Tort Reform: • Parties must settle out of court first • Limit how much a plaintiff can receive for economic & non-economic (punitive) damages • “No-fault” systems

  21. Popular Opinion • A survey of 800 residents revealed people thought 40 percent of civil suits were personal injury claims. • Actually fewer than 5% were tort claims • Many did not realize how many cases settled out of court • 93% settle out of court • Most thought average remedy more than $200,000 • Average is under $30,000

  22. Worker’s Compensation • If a worker is hurt on the job and cannot work, they may receive 2/3 of their salary…but cannot file a lawsuit. • Commercial • Exclusive Remedy: State law determines the compensation based on seriousness of injury. • Workers will not be compensated, if they were intoxicated.

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