Class Action Lawsuits and Lawyers

As noted above, Tillinghast estimates that only 46 percent of the total direct costs of the tort system go to victims in the form of economic and noneconomic damages; 54 percent go to transaction costs. By comparison, in the no-fault compensation systems for on-the-job and vaccine-related injuries, administrative costs make up only about 20 percent and 15 percent of total costs, respectively.(8) Those comparisons are not entirely apt, however. The administrative costs of those compensation systems exclude spending on claimants' attorneys--which has reportedly grown in the workers' compensation system as the regulations governing it have become more complex.
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Attorneys and Legal Information

(10) Efficiency may also suffer if potential injurers find ways to reduce their liability exposure without reducing the actual risk of injury. Such avoidance efforts typically have real resource costs but do not add to the social benefits of tort liability.
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Class Action Lawsuits and Lawyers

0 -------------------------------------------------------------------------------- Source: Congressional Budget Office based on Department of Justice, Bureau of Justice Statistics, Tort Trials and Verdicts in Large Counties, 1996, NCJ 179769 (August 2000), and "Civil Terminations, 1996 and 1997," Federal Court Cases: Integrated Data Base (Federal Judicial Center, Washington, D.C.), dataset nos. 103 and 104, available from the Inter-university Consortium for Political and Social Research at www.
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