The Tort Prof Blog reports on a new study on a Georgia State study that tort reform – particularly tort reform that survives judicial scrutiny – reduces insurance premiums.
I know some medical malpractice lawyers in Maryland have argued the opposite for years, but I think as a matter of textbook economics, this proposition has to be true.
Of course, that does not mean that noneconomic damage caps are just. Requiring the wrongdoer to pay full compensation for harm caused is the sign of a civilized society.
You can find a copy of the study here.