Question

Victim V works at a job where he might be exposed accidentally to a chemical that increases the probability from .01 to .02 of dying from lung cancer in 20 years. V would pay $15,000 to avoid exposure to this risk, or he would accept $15,000 to expose himself to this risk. No matter how hard he tries, V cannot imagine any sum of money that he would accept in ex- change for certain death by lung cancer. V’s employer accidentally exposes him to the chemical. The risk materializes after 20 years, and V dies abruptly from lung cancer. How much are Hand rule damages for V’s heirs? After exposure and before dying, V spent $1000 to move to another neighborhood with better air quality. Should $1000 be added to Hand rule damages, or is it already implicitly included?

Answer 1

HAND RULE DAMAGES ARE : THEY EQUAL THE REASONABLE BURDEN OF PRECAUION DIVIDED BY THE RESULTING REDUCTION IN THE PROBABILIY OF HARM. AS V IS INDIFFERENT BETWEEN $15000 INCREASE AND AN INCREASE OF .01 IN THE PROBABILITY OF CANCER DEATH.

THUS HAND RULE DAMAGES ARE $15000 / 0.1 = $1.5 MILLION.

SINCE IT IS AN OBJECTIVE COST AND SINCE V WAS INDIFFERENT AS NO COST WAS ACCEPTABLE FOR HIS LIFE , SO IT IS IMPLICITLY INCLUDED

Step-by-step explanation:

HAND RULE DAMAGES ARE : THEY EQUAL THE REASONABLE BURDEN OF PRECAUION DIVIDED BY THE RESULTING REDUCTION IN THE PROBABILIY OF HARM. AS V IS INDIFFERENT BETWEEN $15000 INCREASE AND AN INCREASE OF .01 IN THE PROBABILITY OF CANCER DEATH.

THUS HAND RULE DAMAGES ARE $15000 / 0.1 = $1.5 MILLION.

SINCE IT IS AN OBJECTIVE COST AND SINCE V WAS INDIFFERENT AS NO COST WAS ACCEPTABLE FOR HIS LIFE , SO IT IS IMPLICITLY INCLUDED.