Tort System Costs
Posted by Clark Venable on 2/2/2005
I'm posting these data mainly so I'll be able to find them again at a later date, but others might find the numbers useful as well.
" The tort system now costs every man, woman, and child in America an average of $845 a year, almost 10 times the inflation-adjusted $91 per capita it cost in 1950. The $246 billion-a-year total comes to 2.2 percent of America's gross domestic product -- more than triple the 0.6 percent in the United Kingdom and more than double the 0.8 percent in Japan, France, and Canada. And as of 2002, only 22 percent of all tort costs went to compensate alleged victims' out-of-pocket losses; 24 percent went to pay for non-economic losses such as pain and suffering; 19 percent went to plaintiffs' lawyers; 14 percent went to defense costs; and 21 percent went to insurance overhead. "
I found this section in Better Justice: Bush's Missed Opportunity, which is quoting U.S. Tort Costs:2004 Update Trends and Findings on the Cost of the U.S. Tort System.
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