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The size of an award is influenced by many factors—for one, the jury's perception of who will be paying. In suits brought against subway or bus authorities by crime victims, says Chicago Attorney Philip Corboy, "jurors recognize that it's their own tax dollars that pay for the award." And a juror's financial status may matter. Says New York's Moran: "The banker in Westchester won't give you a nickel, while Bronx jurors will give you the courthouse."
When critics complain that such precedent-busting verdicts make little sense, plaintiffs' attorneys like Charles Kavalaris of San Jose, Calif., reply: "The innocent victim of an accident should have somewhere to go if he can prove liability. If you look at it through the eyes of a quadriplegic, it's a fairly simple question to answer." Defendants' lawyers, on the other hand, fume. Attorney Stephen Newton of Mountain View, Calif., recently settled a claim by a victim who was paralyzed for life in an auto accident. Newton, representing a trucking company whose driver was essentially a bystander to the collision, did not believe his client was to blame but did not want to risk a jury verdict. Says he: "It's a form of economic oppression."
Liability laws are a hodgepodge across the nation. Generally, however, if a number of defendants contributed to the plaintiffs injury, he can seek full recovery from one or more of them. In a few states, a case can be thrown out if a plaintiffs carelessness contributed even slightly to the injury. Most states reduce the amount of the judgment in proportion to the plaintiff's negligence. But the long-term trend toward making it easier for plaintiffs to sue has not yet turned around. A bill to limit liability was voted down by a committee of the California legislature two weeks ago.
Potential third-party defendants are frustrated. "They can't even protect the President of the U.S. with all his Secret Service guards," says Atlanta Litigator Oscar Persons. "How do they expect the owner of a hotel to protect each and every one of his guests?" Prison authorities, for example, could soon face such a legal quagmire as a result of acquired immune-deficiency syndrome, the mysterious disease prevalent among homosexuals and heroin addicts. May a government be sued if a prisoner contracts AIDS while in custody? What actions might a court later decide should have been taken to protect inmates, many of whom are drug abusers or engage in homosexual activity?
The motto for potential defendants today is "Be prepared." Some corporations are setting up million-dollar escrow funds to pay damage claims. Others are increasing their insurance coverage. One worried potential defendant upped its coverage last year from $5 million to $25.5 million. The prudent possessor of the deeper pocket: the Brentwood, N.Y., school district.
—By Anastasia Toufexis. Reported by Geoffrey Quinn/New York and Dianna Waggoner/San Francisco