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Full-Text Articles in Law
Negligence And Insufficient Activity: The Missing Paradigm In Torts, David Gilo, Ehud Guttel
Negligence And Insufficient Activity: The Missing Paradigm In Torts, David Gilo, Ehud Guttel
Michigan Law Review
Conventional wisdom in tort law maintains that the prevention of undesirable risks mandates restriction of harmful conduct. Against this widely held conviction, this Article shows that undesirable risks often stem from insufficient, rather than excessive, activity. Because negligence requires investments in only cost-justified care, parties might deliberately limit their activity so that the size of the ensuing risk would be lower than the cost of welfare-enhancing precautions. Parties' incentives to strategically restrict their activity levels have striking implications for the inducement of efficient harm prevention. The overlooked paradigm of insufficient activity calls for the imposition of a new form of …
Stipulated Damages, Super-Strict Liability, And Mitigation In Contract Law, Saul Levmore
Stipulated Damages, Super-Strict Liability, And Mitigation In Contract Law, Saul Levmore
Michigan Law Review
The remedy of expectancy damages in contract law is conventionally described as strict liability for breach. Parties sometimes stipulate damages in advance, and may agree that the damages they stipulate shall be the exclusive remedy for breach. They may do so because of their conviction that they can, even in advance, assess damages with greater accuracy than courts, and they may be wary of litigation costs associated with the postbreach determination of expectancy damages. This Article advances two claims. First, that the familiar expectation remedy is correctly understood to involve elements of fault. There is litigation over the question of …
In (Partial) Defense Of Strict Liability In Contract, Robert E. Scott
In (Partial) Defense Of Strict Liability In Contract, Robert E. Scott
Michigan Law Review
Many scholars believe that notions of fault should and do pervade contract doctrine. Notwithstanding the normative and positive arguments in favor of a fault-based analysis of particular contract doctrines, I argue that contract liability is strict liability at its core. This core regime is based on two key prongs: (1) the promisor is liable to the promisee for breach, and that liability is unaffected by the promisor's exercise of due care or failure to take efficient precautions; and (2) the promisor's liability is unaffected by the fact that the promisee, prior to the breach, has failed to take cost-effective precautions …
Fault In Contract Law, Eric A. Posner
Fault In Contract Law, Eric A. Posner
Michigan Law Review
A promisor is strictly liable for breaching a contract, according to the standard account. However, a negligence-based system of contract law can be given an economic interpretation, and this Article shows that such a system is in some respects more attractive than the strict-liability system. This may explain why, as a brief discussion of cases shows, negligence ideas continue to play a role in contract decisions.
An Information Theory Of Willful Breach, Oren Bar-Gill, Omri Ben-Shahar
An Information Theory Of Willful Breach, Oren Bar-Gill, Omri Ben-Shahar
Michigan Law Review
Should willful breach be sanctioned more severely than inadvertent breach? Strikingly, there is sharp disagreement on this matter within American legal doctrine, in legal theory, and in comparative law. Within law-and-economics, the standard answer is "no "-breach should be subject to strict liability. Fault should not raise the magnitude of liability in the same way that no fault does not immune the breaching party from liability. In this paper, we develop an alternative law-and-economics account, which justifies supercompensatory damages for willful breach. Willful breach, we argue, reveals information about the "true nature" of the breaching party-that he is more likely …
Fault At The Contract-Tort Interface, Roy Kreitner
Fault At The Contract-Tort Interface, Roy Kreitner
Michigan Law Review
The formative period in the history of contract and tort (in the second half of the nineteenth century) may be characterized by the cleavage of contract and tort around the concept of fault: tort modernized by moving from strict liability to a regime of "no liability without fault," while contract moved toward strict liability. The opposing attitudes toward fault are puzzling at first glance. Nineteenth-century scholars of private law offered explanations for the opposition, reasoning that alternative ideas about fault account for the different character of state involvement in enforcing private law rights: tort law governs liabilities imposed by law …
Foreword: Fault In American Contract Law, Omri Ben-Shahar, Ariel Porat
Foreword: Fault In American Contract Law, Omri Ben-Shahar, Ariel Porat
Michigan Law Review
The basic rule of liability in tort law is fault. The basic rule of liability in contract law is no fault. This is perhaps one of the most striking divides within private law, the most important difference between the law of voluntary and nonvoluntary obligations. It is this fault line (speaking equivocally) that the present Symposium explores. Is it a real divide-two opposite branches of liability within private law-or is it merely a rhetorical myth? How can it be justified? As law-and-economics scholars, this fault/no-fault divide between contract and tort is all the more puzzling. In law and economics, legal …
Let Us Never Blame A Contract Breaker, Richard A. Posner
Let Us Never Blame A Contract Breaker, Richard A. Posner
Michigan Law Review
Holmes famously proposed a "no fault" theory of contract law: a contract is an option to perform or pay, and a "breach" is therefore not a wrongful act, but merely triggers the duty to pay liquidated or other damages. I elaborate the Holmesian theory, arguing that fault terminology in contract law, such as "good faith," should be given pragmatic economic interpretations, rather than be conceived of in moral terms. I further argue that contract doctrines should normally be alterable only on the basis of empirical investigations.
The Role Of Fault In Contract Law: Unconscionability, Unexpected Circumstances, Interpretation, Mistake, And Nonperformance, Melvin Aron Eisenberg
The Role Of Fault In Contract Law: Unconscionability, Unexpected Circumstances, Interpretation, Mistake, And Nonperformance, Melvin Aron Eisenberg
Michigan Law Review
It is often asserted that contract law is based on strict liability, not fault. This assertion is incorrect. Fault is a basic building block of contract law, and pervades the field. Some areas of contract law, such as unconscionability, are largely fault based. Other areas, such as interpretation, include sectors that are fault based in significant part. Still other areas, such as liability for nonperformance, superficially appear to rest on strict liability, but actually rest in significant part on the fault of breaking a promise without sufficient excuse. Contract law discriminates between two types of fault: the violation of strong …
The Fault That Lies Within Our Contract Law, George M. Cohen
The Fault That Lies Within Our Contract Law, George M. Cohen
Michigan Law Review
Scholars and courts typically describe and defend American contract law as a system of strict liability, or liability without fault. Strict liability generally means that the reason for nonperformance does not matter in determining whether a contracting party breached. Strict liability also permeates the doctrines of contract damages, under which the reason for the breach does not matter in determining the measure of damages, and the doctrines of contract formation, under which the reason for failing to contract does not matter In my Article, I take issue with the strict liability paradigm, as I have in my prior work on …
When Is A Willful Breach "Willful"? The Link Between Definitions And Damages, Richard Craswell
When Is A Willful Breach "Willful"? The Link Between Definitions And Damages, Richard Craswell
Michigan Law Review
The existing literature on willful breach has not been able to define what should count as "willful." I argue here that any definition we adopt has implications for just how high damages should be raised in those cases where a breach qualifies as willful. As a result, both of these issues-the definition of "willful," and the measure of damages for willful breach-need to be considered simultaneously. Specifically, if a definition of "willful" excludes all breachers who behaved efficiently, then in theory we can raise the penalty on the remaining inefficient breachers to any arbitrarily high level ("throw the book at …
Torts--Strict Liability--A Hospital Is Strictly Liable For Transfusions Of Hepatitis-Infected Blood--Cunningham V. Macneal Memorial Hospital, Michigan Law Review
Torts--Strict Liability--A Hospital Is Strictly Liable For Transfusions Of Hepatitis-Infected Blood--Cunningham V. Macneal Memorial Hospital, Michigan Law Review
Michigan Law Review
This Recent Development will briefly trace the development of hospital liability for transfusions of hepatitis-infected blood and will analyze both the impact of Cunningham on that area of the law and the correctness of the Cunningham decision.
Products Liability--The Expansion Of Fraud, Negligence, And Strict Tort Liability, John A. Sebert Jr.
Products Liability--The Expansion Of Fraud, Negligence, And Strict Tort Liability, John A. Sebert Jr.
Michigan Law Review
While judicial acceptance of this concept of strict tort liability has been proceeding apace, far less dramatic but equally significant developments have been occurring with respect to both negligence and fraud liability. The possibility of recovering for a seller's misrepresentations concerning his product has been enhanced by a plaintiff-oriented judicial redefinition of two elements of a cause of action for fraud: defendant's knowledge of the falsity of his representation and plaintiff's reliance upon the deception. At the same time, negligence liability has often come to resemble liability without fault as courts continue to deemphasize, as a prerequisite to the application …
Products Liability--Some Observations About Allocation Of Risks, Page Keeton
Products Liability--Some Observations About Allocation Of Risks, Page Keeton
Michigan Law Review
Virtually all of the activities of mankind involve the use of some product. Consequently, nearly all losses in the nature of physical damage to persons or things, and a great deal of the economic losses flowing from inferior or unfit products, are factually caused by characteristics or conditions of products, or at least occur during the use of products. Therefore, when fault, in the sense in which fault has been used in the Anglo-American law of torts (a usage which frequently results in the imposition of liability without personal fault), is abandoned as a basis for shifting or allocating losses, …
Sales-Implied Warranty-Merchantable Quality Of Tobacco Products, John E. Mogk
Sales-Implied Warranty-Merchantable Quality Of Tobacco Products, John E. Mogk
Michigan Law Review
Decedent's widow and the administrator of his estate brought a consolidated suit against the American Tobacco Company on six theories of liability for the death of decedent, allegedly caused by lung cancer purportedly contracted from the smoking of defendant's cigarettes. At the close of plaintiff's evidence, the district court directed a verdict for defendant on all counts except those of implied warranty and negligence. The jury determined that, although defendant's cigarettes were the cause of decedent's lung cancer and resultant death, defendant had no means of knowing that the cigarettes would cause cancer. On appeal of the implied warranty charge …
Admiralty--Liability--Transitory Unseaworthiness, Richard Delamielleure
Admiralty--Liability--Transitory Unseaworthiness, Richard Delamielleure
Michigan Law Review
While loading grain aboard a ship, the petitioners, longshoremen, were injured when they inhaled noxious fumes from a shot of grain released into the vessel's hold, the grain having been treated with a chemical insecticide by unknown parties at an inland point. Petitioners brought suit against the city, which owned the grain elevators, and the shipowner, alleging, among other things, that the vessel was unseaworthy. The district court found the ship to be seaworthy, and the circuit court of appeals affirmed the judgment for the defendant. On certiorari the Supreme Court vacated the judgment and remanded the case to the …
Negligence - Res Ipsa Loquitur - Doctine Applied Although Damage Causing Instrumentality Within The Exclusive Control Of Defendant At The Time Of The Damage, Kenneth Laing Jr.
Negligence - Res Ipsa Loquitur - Doctine Applied Although Damage Causing Instrumentality Within The Exclusive Control Of Defendant At The Time Of The Damage, Kenneth Laing Jr.
Michigan Law Review
Seven months after defendant had installed a washbowl in a bathroom in plaintiff's house, the house was damaged by water when one of the pipes became disconnected from a faucet. During the two weeks immediately prior to the damage the house was unoccupied, but inspections were made every two or three days by plaintiff's employee. Plaintiff sued defendant to recover for the damage caused by defendant's alleged negligence in connecting the water pipe to the washbowl. In a trial to the court, the evidence tended to eliminate other possible causes of the disconnection, such as rough use or manufacturing fault. …
Admiralty - Unseaworthiness - Recovery For Injuries Resulting From Condition Arising After Commencement Of The Voyage, John L. Peschel
Admiralty - Unseaworthiness - Recovery For Injuries Resulting From Condition Arising After Commencement Of The Voyage, John L. Peschel
Michigan Law Review
Plaintiff, a member of the crew of a fishing vessel, sustained injuries while disembarking when he slipped on a slimy substance on the ship railing. In an action brought against the shipowner, the seaman sought recovery on three alternative grounds: first, under the Jones Act based upon negligence; second, under general maritime law based upon the obligation of the shipowner to furnish a seaworthy vessel; third, under general maritime law for maintenance and cure. Judgment was entered pursuant to a verdict limiting the seaman to recovery for maintenance and cure. On the seaman's appeal from the adverse verdict on the …
Libel And Slander-Radio Defamation-Liability Of Broadcasting Company For Defamatory Statements Made Over Its Facilities, Albert B. Perlin, Jr. S. Ed.
Libel And Slander-Radio Defamation-Liability Of Broadcasting Company For Defamatory Statements Made Over Its Facilities, Albert B. Perlin, Jr. S. Ed.
Michigan Law Review
During a radio program, a lessee of broadcasting facilities read previously prepared statements regarding a public official which were defamatory per se. In an action for defamation against the broadcasting company, defendant attacked the complaint as insufficient in failing to allege negligence. Held, the allegation of negligence is essential, but the complaint was sufficient. Kelly v. Hoffman, (N.J. 1948) 61 A. (2d) 143.