Justinian Lane
How Much Is Justice Worth?
Earlier today, I was having a discussion with Ted Frank regarding the civil justice system. We were throwing studies and statistics at each other and arguing about the economics of the civil justice system. I was frustrated that neither one of us can seem to find studies that weren’t at least funded in part by agenda-driven organizations on both sides of the tort “reform” debate. I’m skeptical about any study funded with insurance money, and Ted is certainly skeptical about any study funded by the trial bar. I wished we could find some numbers to agree upon - that couldn’t be contradicted.
But then I realized something. Ted and I quarrel so much because we have different philosophies. As I noted in a comment at Overlawyered, I believe the sole purpose of the civil justice system is to administer justice. Ted, on the other hand, thinks that in addition to that duty, the civil justice system should benefit our economy. Within reason, if I present tales of woe and suffering to Ted, he’s not going to be persuaded to abandon something like damage caps. And within reason, if Ted proves to me that our civil justice system adds X number of dollars to the price of some good, that’s not going to persuade me that tort “reform” is a good thing.
Justice is expensive - unquestionably. We spend something like $40 billion a year just on the drug war. It costs some other ridiculously large amount of money housing criminals in our prison system. If we eliminated the criminal justice system, we’d surely see a reduction in our tax bill. But no one seriously argues we should curb prosecutions and let criminals go free to save a buck. If anything, it’s the opposite. We’re disgusted when we hear about criminals being released early because of overcrowding, and we hate to think our prosecutors and police lack the funds to administer justice.
Most of us will (hopefully) never have an emergency that forces us to call the police. Even if you or I never have need of the police, we still pay for them through our taxes. We do that at least in part because we like knowing the police will be there for us if we need them.
If the tort “reform” crowd is right - which I dispute - and the costs of our civil justice system ARE a “tort tax” upon goods and services paid for by all of us, what’s wrong with that? We like knowing that should we need the civil justice system, it’s there for us. So if we pay for our police and armed services to keep us safe, shouldn’t we pay for the civil justice system to allow us to enforce our rights? Of course we should.
The question then becomes one of cost. My latest argument with Ted was prompted by his repetition of the claim that “tort costs” add $500 to the cost of every car. I don’t believe that claim. (The truth is that the $500 includes safety equipment like rear seat belts and the like. Turns out that those and other safety devices were installed because of fear of litigation.) But for the sake of argument, let’s pretend it’s right.
How much, then, is a fair dollar amount to be added to the price of every car to fund the civil justice system? Apparently, $500 is too much. What about $400? Or $250? I’d point out that smog control devices add well over $500 to the cost of every new car.
Unlike the costs of the tort system, the costs of smog equipment CAN be quantified: A catalytic converter costs X, a smog pump costs Y, and the remaining gadgetry costs Z. Remove any one of those components, and you’ll immediately know how much you could save on every automobile. Try doing that with tort reform; no one at Chrysler could tell me how much the price of a new Crossfire would drop if we capped noneconomic damages, or if we instituted “loser pays,” or enacted any other “reform” to the justice system. Yet we’re supposed to take it as gospel truth that tort “reform” will in fact result in cheaper cars. OK, let’s just pretend that’s right, too. Does the promise of cheaper cars justify altering the civil justice system?
Or put another way: Is Ted right, and economic considerations should play a part in determining the rules of our civil justice system? Or am I right, and the fair and just application of fair and just laws is more important than the economic costs of the civil justice system?
Posted at 6:31 PM, Dec 13, 2006 in Civil Justice | Permalink | Comments (9) | TrackBack (1)







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