2012年6月28日星期四

corporations and other deep pockets that pass the cost on to their consumers

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Most people don't realize that the tort system is nothing more than an inefficient method of wealth transfer where the transactional costs often exceed 50% of the award. Most awards are funded by insurance companies, corporations and other deep pockets that pass the cost on to their consumers, assuming they can stay in business that long. The transactional cost of tort claims and lawsuits is so high that it is usually cheaper to settle than litigate and risk a runaway award. Inner city juries with entitlement mentalities don't even understand the concept of fault.
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