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In many cases, however, the effect of the collateral-source rule is to allow victims to receive double compensation for their injuries. In the past two decades, many states have revised the collateral-source rule in various ways that could serve as models for federal action. Those revisions range from merely allowing collateral payments to be introduced as evidence in certain types of cases to requiring that damages be reduced to offset such payments under all circumstances. If verdict errors never occurred, there would be no clear economic rationale for such changes--efficiency dictates that injurers should face the costs of their actions (or, at least, of their negligent actions) regardless of the other benefits available to victims.
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In that view, such awards are inequitable as well as inefficient. Indeed, the Supreme Court has ruled that punitive damages violate the Due Process Clause of the Constitution if they are not "both reasonable and proportionate to the amount of harm to the plaintiff and to the general damages recovered.
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Class Action Lawsuits and Lawyers

Underinvestment in prevention can even arise from perverse incentives that associate increased care with higher liability costs--as in the case of a company that refrains from researching ways to make its products safer lest it create a paper trail of safety-related data that could be used against it in court.(12) Whatever the cause, underinvestment in prevention has the same effect on efficiency as overinvestment: the net savings from precaution are lower than they would be in the ideal case (here, because some worthwhile opportunities are neglected), and thus they are less likely to outweigh the other costs of the liability system. The Efficiency and Equity of Nonpecuniary Damages Critics of the tort system have particularly questioned the deterrence benefits of nonpecuniary damages (punitive awards and compensatory awards for pain and suffering). They argue that large nonpecuniary damages cannot provide useful incentives for precaution because they are awarded in a subjective, arbitrary, and unpredictable way, with little connection to the actual harm or, in the case of punitive damages, to the character of the injurer's conduct.
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edu/openbook/0309051304/html/77.html.
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Class Action Lawsuit Lawyers and Attorneys - Eli Lilly and Company ...

The Kahn Gauthier Law Group and Class Action Lawsuit Lawyers and Attorneys are ... Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina ... www.classactionamerica.com/affiliates/ gm/classactionlawsuit.asp?lngCaseID=2794 - 63k -
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Class Action Lawsuits and Lawyers

tlpj.org/caappbrochure.pdf. .
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