Abstract

http://ssrn.com/abstract=7589
 
 

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The Death of Liability


Lynn M. LoPucki


University of California, Los Angeles (UCLA) - School of Law


Yale Law Journal, October 1996

Abstract:     
Based on systems/strategic analysis, this paper predicts the complete failure of legal liability system. Liability is the system by which injured persons recover money damages from those who injure them. The system operates through the entry and enforcement of judgments by the courts. The paper argues that the system is vulnerable to defeat by a variety of judgment proofing techniques which can be categorized as secured debt strategies, ownership strategies, exemption strategies, and foreign haven strategies. Computerization has recently brought about dramatic reductions in the costs of pursuing these strategies, making them cost effective for more potential defendants. As use spreads, the cultural and political barriers to judgment proofing will decline, leading to wider use of the techniques and ultimately to system failure. The paper examines a variety of strategies by which the system might respond, including shareholder unlimited liability, involuntary creditor priority, asset provider liability, enterprise liability, mandatory insurance, and financial responsibility laws. The paper concludes that judgment- proofing strategists will be able to overcome all of them.

Number of Pages in PDF File: 92

JEL Classification: K40

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Date posted: May 8, 2000  

Suggested Citation

LoPucki, Lynn M., The Death of Liability. Yale Law Journal, October 1996. Available at SSRN: http://ssrn.com/abstract=7589 or http://dx.doi.org/10.2139/ssrn.7589

Contact Information

Lynn M. LoPucki (Contact Author)
University of California, Los Angeles (UCLA) - School of Law ( email )
385 Charles E. Young Dr. East
Room 1242
Los Angeles, CA 90095-1476
United States
(310) 794-5722 (Phone)
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