more transparent than a conventional confidential products liability
the negative side, probably increased
it may have reduced the number of cases
the number of that were tried.
It was also less transparent than conventional public trial.
It also allowed Bayer to reduce the total amount paid out to cervistatin claimants as compared with a more conventional mass tort
If pharmaceutical mass tort litigation and causes inefficiently high level of
overdeters corporate precautions to occur
this is a positive outcome.
If, on the
other hand, pharmaceutical this reduced payout may
inefficiently reduce future precautionary measures. system probably does both, depending on the specific expected liability for it (Garber, 1993).
Of course the tort product and the
Similarly, the compensatory function of tort law was either well
or ill-served depending on one’s
schedule. Press for a death from
reports suggest rhabdomyolysis.
views as to the adequacy of Bayer’s that Bayer offered approximately $1 m This is a generous settlement compared
to that available to many victims of misfortune.
On the other hand it
is substantially less than the $4-9 and other markets implicitly assign life (Viscusi and Aldy, 2003).
million dollars to the value of
that the US labor a statistical human
Ultimately, it is not possible, on the balance, to conclude that the Bayer settlement strategy either enhanced or reduced public welfare. Like many policy experiments, it is an interesting alternative whose advantages and disadvantages should be understood.
CONCLUSIONS AND POLICY IMPLICATIONS
Confidential settlement agreements are understandably
decried bans on
51 ____________ See also Hensler (1998) mass tort settlements).
(discussing depersonalizing aspects of