Sue the Bastards!

How often do we hear that some activity is not allowed or is no longer allowed due to "liability issues"?  How often do we hear about restricted access or that some courtesy is no longer offered for the same reason?  I’m sure we are all familiar with examples in our own lives.  Here, in plain, blunt language, is what is really meant by the phrase, “liability issues.” 

If we let you do this, there is a possibility that someone may get hurt, frightened or distressed.  If that happens there is a possibility that the person affected will get a lawyer and sue us.  The lawyers will argue that we did not do everything possible to minimize or eliminate the danger.  When that happens, a jury will conclude that the victims have suffered and deserve compensation, even if they were being careless themselves.  With very little economic understanding, the jury will also conclude that some big company or an insurance company will cover the cost and no one is really hurt.  It is this dynamic and the threat it carries that lead to so many out-of-court settlements.

As a result we get fewer opportunities, enjoy fewer experiences, and endure more restrictions to our lives; and it indirectly costs us more for that privilege through higher doctor bills, higher fees on the sports our children play, higher admissions to parks, higher auto/home/renter’s insurance, higher restaurant bills, and in general, higher prices for everything we buy.

This dynamic would change if some one could brief every jury on a few issues:

1.     Life is not 100% risk-free.  There is no way to ensure that people won’t ever get hurt – especially if they are not being particularly careful themselves.

2.     When you think about your own life, did you always do everything possible to make it risk-free for everyone else you come in contact with?  Is every action at work done with the highest possible degree of care?  Do you always clear ice and snow from your driveway as soon as possible?  Are all the trees in your yard pruned to ensure a branch will never fall or poke someone in the eye?  Are your pets and children always impeccably behaved?  The list could go on and on, but the point is that no one is capable of doing everything possible in all cases.  Shouldn’t there be some room for flexibility to distinguish between misconduct or gross negligence versus an ordinary level of diligence?

3.     Do you understand that there is no magic money tree?  When corporate expenses increase, whether it be shoplifting, utility costs, the need to print those ridiculous warning labels or legal settlements, they pass those costs along to their customers – you and me.  This is especially easy to do when all their competitors are exposed to the same conditions and risks.  When an insurance company pays a settlement, they pass the increased cost along to their customers.  When other companies see this increased risk of legal costs, they must account for it and pass that cost along to their customers as well.  In the end we, not big industry or insurance, pay for the actions of sympathetic juries.

Can we fix this problem of an increasingly litigious society through individual behavior – people accepting more responsibility rather than always blaming others and more rational juries with better economic understanding?  You bet we can.