Do Punitive Damages Work?
• States with punitive damages exhibit no safer risk performance than states without punitive damages. There were no overall differences with regard to safety and environmental performance, and there is no deterrence benefit that justifies the chaos and economic disruption inflicted by punitive damages. (KRC: Hantler, Seven Myths p. 2, quoting W. Kip Viscusi, The Social Costs of Punitive Damages Against Corporations, 87 Geo. L.J., pp. 297, 298. 1998) • [W]hen companies weigh the costs of increased safety against the costs of risks, the potential for punitive damages adds to the costs of risksmaking safety precautions more attractive. (KRC: Hantler, Seven Myths p. 2) • [T]here is no need to augment the safety incentives provided by the market, government regulation, and compensatory damages. Penalties that go beyond those needed to create an efficient level of safety will produce redundant levels of safety. These costs, in turn, will lead to higher prices and other adverse economic effe
