Breach of Duty as a Necessary Cause of the Losses - Removing an Alleged Difference between Strict Liability and Negligence

Autores/as

  • Louis Theodoor Visscher Erasmus University Rotterdam

DOI:

https://doi.org/10.18836/2178-0587/ealr.v2n2p188-203

Resumen

In several Law and Economics publications in the area of tort law, emphasis is being placed on an alleged difference between strict liability and negligence. Under strict liability, an injurer is liable for the losses of the victim, irrespective of his level of care. Under negligence, the injurer is not liable if he took at least the legally required care level. According to mainstream Law and Economics literature, this feature of negligence causes a discontinuity in the expected private costs of the injurer. This discontinuity subsequently forms the basis for several analyses which argue that negligence provides different incentives than strict liability.

In this paper, I argue that this traditional wisdom overlooks an important insight which was already expressed by Mark Grady in 1983 and Marcel Kahan in 1989. According to these authors, the alleged discontinuity does not exist in reality, because courts, when applying the negligence rule, require that the negligence was a necessary cause of the accident. This implies that losses which also would have occurred had the injurer taken due care do not form part of the expected private costs of the injurer when acting negligently. It is exactly those costs which form the discontinuity.

With this paper, I want to focus the attention on this important insight and I will discuss the relevance of this insight for several topics in the economic analysis of tort law where allegedly negligence provides better care incentives than strict liability.

Subsequently I will discuss the way in which Dutch, Belgian and German tort law deal with this issue, and I will conclude that Grady’s and Kahans approach indeed better reflects tort law in these countries. This implies that Law and Economics scholars, if they want to be able to provide relevant insights and relevant arguments, should change the way in which they view and model negligence. After all, if the model adopted in economic analyses of tort law does not reflect the essence of this body of law, it will not be able to yield correct predictions or valuable policy recommendations.

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Biografía del autor/a

Louis Theodoor Visscher, Erasmus University Rotterdam

Associate Professor in Law and Economics

Erasmus School of Law

Rotterdam Institute of Law and Economics (RILE)

Publicado

2011-09-12