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Economic theory of negligence

Hand Formula

B = ???

P = ???

L = ???

Economic theory of negligence

Hand Formula

B = Burden of precautionary measures

P = Probability of loss/harm

L = Magnitude of loss/harm

??? < ??? = Negligent

??? > ??? = NOT negligent

Economic theory of negligence

Hand Formula

B = Burden of precautionary measures

P = Probability of loss/harm

L = Magnitude of loss/harm

IF B < PL

AND defendant did not take on B

THEN defendant was negligent

IF B > PL

AND defendant did not take on B

THEN defendant was NOT negligent

Structuring Arguments

Syllogism for proving duty and breach

D was legally obligated to do X.

D failed to do X.

Therefore, D breached their legal duty.

Syllogism for proving duty and breach

D had a duty (to the plaintiff) to exercise reasonable care under the circumstances.

Reasonable care under the circumstances was X, because of

- foreseeability,

- reasonable person standard,

- custom,

- statute,

- or hand formula.

D failed to do X, therefore D acted negligently / breached their legal duty to plaintiff.

Byrne v. Boadle

Res Ipsa Loquitur

Two requirements:

1. Harm results from the kind of situation in which negligence can be inferred
2. Defendant was responsible for the instrument of harm

Larson v. St. Francis

Connolly v. Nicollet Hotel

Why Allow Res Ipsa Loquitur?

1. Probabilistic rationale

2. Asymmetry and fairness justification