Law Commons^™

The Tort Of Bad Faith In First-Party Insurance Transactions: Refining The Standard Of Culpability And Reformulating The Remedies By Statute, Roger C. Henderson

University of Michigan Journal of Law Reform

This Article explores the common-law and statutory background of the tort of bad faith in first-party insurance situations analyzes the varying standards of culpability that have been developed by the courts and suggests a uniform statutory solution to the problems created by the varying standards. The statute also tailors the remedies more closely to the particular type of insurer wrongdoing. The proposed remedies recognize the dual nature of the insurer-insured relationship, that is, one based upon contract and tort concepts. Such a statute would eliminate many of the ambiguities and other deficiencies in the common law of those states that …

Compensatory And Punitive Damages For A Personal Injury: To Tax Or Not To Tax, Douglas A. Kahn

Articles

Since the adoption in 1919 of the Revenue Act of 1918, damages received on account of personal injuries or sickness have been excluded by statute from gross income.1 This exclusion, which does not apply to reimbursements for medical expenses for which the taxpayer was previously allowed a tax deduction,2 is presently set forth in section 104(a)(2). One might expect that a provision having recently attained the ripe age of 75 years without change in its basic language would have a settled meaning. However, recent litigation under section 104(a)(2) bristles with unsettled issues. Does the exclusion apply to punitive damages? To …

Market-Share Liability After Hymowitz And Conley: Exploring The Limits Of Judicial Power, Christopher J. Mcguire

University of Michigan Journal of Law Reform

This Note surveys the development of market-share liability and examines the limits on the power of state and federal courts to impose liability on defendants through market-share liability. Part I examines briefly the development of market-share liability in the early 1980s. It then explores how the New York Court of Appeals extended market-share liability in Hymowitz v. Eli Lilly and explores this case's ramifications. Part I also draws on a recent Florida case, Conley v. Boyle Drug Co., for further insight into the problems surrounding market-share liability litigation. Part II argues that jurisdictional limitations, such as standing to sue …

Medical Maloccurrence Insurance: A First Party No-Fault Insurance Proposal For Resolving The Medical Malpractice Insurance Controversy, Larry M. Pollack

University of Michigan Journal of Law Reform

Part I of this Note examines the broad, underlying themes of tort theory and argues that, in general, the tort system's primary responsibility should be compensation, rather than deterrence of risk taking. In so far as the production of goods and services causes injury, such losses should be shared and spread as widely and proportionately as possible. Part II discusses the history and nature of the medical malpractice insurance crisis. Part III evaluates the numerous systemic solutions suggested by various commentators. Finally, Part IV proposes a new solution: first party, no-fault medical maloccurrence insurance (MMI).

Developing A Victims' Suit For Injuries Caused By A Compulsorily Released Prisoner, Leonard M. Niehoff

University of Michigan Journal of Law Reform

This Note advocates the development of a tort remedy for victims injured by a compulsorily released prisoner. This remedy would be based on existing tort theory permitting suits against third parties whose negligence causes or facilitates a criminal act. The victim would bring suit against both the state and third parties who aided in the criminal release determination . To support his claim, the victim would allege: (1) that state officials negligently selected the offending inmate for early release; and (2) that the state negligently maintained the unconstitutional prison conditions which precipitated the release.

Part I of this Note discusses …

Employment-At-Will Doctrine: Providing A Public Policy Exception To Improve Worker Safety, Daniel T. Schibley

University of Michigan Journal of Law Reform

Occupational safety would be greatly enhanced if employees had a viable option of refusing to work under unsafe conditions without risking their jobs. This Note proposes a public policy exception to the employment-at-will doctrine that would give a cause of action to an employee discharged for refusing to work under unsafe conditions. Part I examines the employment-at-will rule and its recognized exceptions. Part II analyzes the inadequacies of existing statutory remedies for a discharged employee who refused to work under unsafe conditions. Finally, Part III proposes an alternative remedy: providing a common-law exception to the employment-at-will rule that will give …

A Proposal For Apportioning Damages In Fair Representation Suits, Kenneth B. Mcclain

University of Michigan Journal of Law Reform

Apportionment of damages in fair representation suits represents one of the most unsettled issues in labor law today. Although the Supreme Court has attempted to establish a single "governing principle" for apportioning damages, lower courts have read this principle as authorizing two divergent standards for apportionments. Part I of this article traces the evolution from the Court's original standard presented in Vaca v. Sipes through two subsequent applications of that standard: the Czosek v. O'Mara standard, which interpreted Vaca as placing the bulk of damages on the employer, and Justice Stewart's standard taken from his concurrence in Hines v. Anchor …

Toxic Substance Contamination: The Risk-Benefit Approach To Causation Analysis, Bradford W. Kuster

University of Michigan Journal of Law Reform

This article argues that the dilemma described above requires change and proposes a new standard for causation in this type of toxic contamination case. Part I examines the difficulties posed by conventional common law relief mechanisms, and the inadequacies of existing statutory relief mechanisms. Part II scrutinizes a more lenient burden of proof standard, the risk-benefit approach, which some courts have applied when faced with situations involving scientific uncertainties. The risk-benefit approach will be applied to causation analysis in the context of damage recoveries, using the. Hemlock, Michigan, situation as a case study. Part III discusses present congressional proposals, and …

Tort Claims Under The Present And Proposed Bankruptcy Acts, Stephen Allen Edwards

University of Michigan Journal of Law Reform

Congress may soon enact the first complete revision of the United States bankruptcy laws in almost four decades. Among the numerous changes proposed by the legislature is a major alteration of the provability and dischargeability of tort claims asserted against the bankrupt's estate. This article will discuss the treatment of tort claims in the present Act and the changes to be made by the proposed Act, and will evaluate alternative approaches to compensating victims of bankrupt tortfeasors.

Consumer Complaints: A Proposed Federal Trade Regulation Rule, Howard R. Lurie

University of Michigan Journal of Law Reform

It is no secret that most consumers are unable to protect themselves in the marketplace, yet government assistance to the consumer is frequently unavailable. All too often the bureaus of government are interested primarily in controversies of major significance. Minor consumer complaints are viewed as an annoyance that distract and interfere with more important matters. What must be done to protect consumers is to redress the balance of power now heavily weighted in favor of business. To do so requires that government go beyond current concepts of appropriate consumer protection and establish unorthodox remedies. One such remedy is suggested in …

Effect Of A Change In The Law Upon Rights Of Actions And Defences, Thomas M. Cooley

Articles

A very interesting and important question frequently is, what effect has been produced upon a right of action, or upon a previously existing defence to an action, by a change in the law effected by statute after the right has accrued, or the cause of action has arisen, to which the defence was applicable. The question is encountered in a great variety of cases, and is sufficiently important to be considered under the several heads where the cases seem to range themselves. This is done imperfectly below.