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Part 3: Tort Litigation

Assignment 10 — Special Liability & Tort Litigation

Start Here: 5 Things You MUST Know

1

Compensatory damages = special (economic: medical bills, lost wages) + general (non-economic: pain, suffering, emotional distress)

2

Nominal damages = token amount ($1) proving a right was violated. Punitive damages = punishment for oppressive/malicious/fraudulent conduct

3

Survival = the dead person's OWN claim continues. Wrongful death = a NEW claim by SURVIVORS for THEIR losses

4

Statute of limitations = deadline from discovery. Statute of repose = absolute deadline from date product was sold

5

For minors, the statute of limitations does NOT start running until they reach the age of majority

1. Compensatory Damages

Compensatory damages are meant to make the plaintiff "whole" -- to put them back (financially) where they were before the tort. They come in two types.

Special Damages (Economic)

Specific, quantifiable monetary losses:

  • Medical expenses (past and future)
  • Loss of wages and earnings (past and future)
  • Property damage repair or replacement costs
  • Other out-of-pocket costs

Example: After a car accident, Maria has $50,000 in medical bills, $20,000 in lost wages while recovering, and $15,000 to repair her car. These are all special damages -- specific dollar amounts with receipts.

General Damages (Non-Economic)

Losses that are real but hard to quantify:

  • Pain and suffering -- physical pain endured
  • Emotional distress -- anxiety, depression
  • Loss of consortium -- loss of companionship
  • Disfigurement -- scarring, visible injuries
  • Loss of enjoyment of life

Example: Maria also suffers chronic back pain, nightmares about the accident, and can no longer play tennis -- her favorite hobby. These are general damages -- real losses but no exact dollar amount.

2. Nominal & Punitive Damages

Nominal Damages

A token amount (like $1) awarded when a legal right has been violated but no actual loss occurred. Establishes the defendant was wrong.

Scenario: Technical Trespass

The Setup: Your neighbor walks across your property every day without permission.

What Happens: You sue for trespass.

The Result: Court awards $1 in nominal damages. You proved the trespass happened but suffered no real harm. It establishes the legal principle that your neighbor was wrong.

Punitive Damages (Bad-Faith Damages)

Go beyond compensation -- meant to punish the defendant and deter similar behavior. Awarded when conduct was:

  • Oppressive
  • Malicious
  • Fraudulent
  • Intended to cause harm

Scenario: Exploding Gas Tanks

The Setup: An auto manufacturer discovers gas tanks explode in rear-end collisions. An internal memo shows a $11/car fix but the company decides not to because it would hurt profits.

The Result: Jury awards compensatory damages PLUS millions in punitive damages because the manufacturer knowingly chose profits over safety.

3. Survival Statutes & Wrongful Death

Critical Exam Distinction

These are two completely different legal actions that compensate different people for different losses. Both can be filed in the same case.

Survival Statute

The deceased person's OWN claim continues. Their estate pursues what THEY suffered before dying.

What Can Be Recovered:

  • Medical expenses incurred before death
  • Pain and suffering before death
  • Lost wages between injury and death
  • Property damage claims

Example: Tom is injured by a defective elevator. He incurs $200,000 in medical bills and suffers months of pain. He later dies of an unrelated heart attack. His estate CAN continue the elevator lawsuit for Tom's medical expenses and pain before death.

Wrongful Death

A NEW claim by SURVIVORS for THEIR losses. Did not exist at common law -- created by statute.

What Can Be Recovered:

  • Loss of deceased's future earnings/support
  • Loss of companionship/consortium
  • Loss of parental guidance
  • Funeral and burial expenses
  • Survivors' emotional suffering (some states)

Example: Sarah (35, mother of two, earning $80,000/year) is killed by a drunk driver. Her family sues for THEIR losses: lost income, loss of companionship, lost parental guidance, funeral costs.

Key Distinction to Memorize

Survival

Dead person's OWN claim

What THEY suffered

vs.

Wrongful Death

NEW claim by SURVIVORS

What THEY lost

4. Mass Tort Litigation

Mass Tort Litigation

Cases where a large number of plaintiffs are injured by the same product or event. Examples: asbestos exposure, pharmaceutical drugs with widespread side effects, environmental contamination.

Key Challenges

  • Thousands or millions of potential plaintiffs
  • Difficult proof of causation across different exposures and time periods
  • Coordinating litigation across multiple jurisdictions
  • Often handled through multidistrict litigation (MDL) procedures

Real-World Scenario: Asbestos Litigation

The Setup: Thousands of workers at factories, shipyards, and construction sites were exposed to asbestos over decades. Many developed mesothelioma and other cancers years or decades later.

What Happens: Workers file lawsuits against asbestos manufacturers, but many manufacturers have gone bankrupt, exposure occurred at many different times, and causation is hard to prove for any individual plaintiff.

The Result: Courts consolidate cases into mass tort proceedings. Bankruptcy trusts are established. This remains one of the largest mass tort litigations in history, demonstrating the challenges of coordinating thousands of claims across multiple jurisdictions and time periods.

5. Statutes of Limitations & Repose

Statute of Limitations

Sets a deadline for filing a lawsuit. Miss it and you lose your right to sue forever.

When does the clock start? A cause of action accrues when:

  • The wrongful act occurred, AND
  • The plaintiff knew or should have known about the injury

Example: A 2-year statute of limitations for personal injury. You discover your chronic headaches are caused by a defective chemical in 2024. The clock starts in 2024 when you discover it, not when you were first exposed.

Statute of Repose

Sets an absolute outer deadline measured from a specific event (when a product was sold or a building completed), regardless of when injury was discovered.

In plain English: "Sue within X years of the product being sold, period -- even if you did not know about the injury yet."

Example: A 10-year statute of repose for construction defects. A building is completed in 2015. In 2026, you discover a foundation defect. You are OUT OF TIME -- the 10-year repose period expired in 2025, even though you just found the defect.

Statute of Limitations

Clock starts at discovery

vs.

Statute of Repose

Clock starts at sale/completion

Tolling for Minors

A statute of limitations begins to run for a minor from the date they reach the age of majority. The clock does NOT start while they are a child.

Example: A 5-year-old is injured by a defective toy. In a state with a 2-year statute of limitations and age of majority at 18, the child has until age 20 to file suit -- the clock starts at 18, not at age 5.

Cheat Sheet

Print this page for quick reference

Damages

  • Compensatory: Special (economic) + General (non-economic)
  • Nominal: $1 token -- right violated, no real harm
  • Punitive: punishment for oppressive/malicious/fraudulent acts

Survival vs. Wrongful Death

  • Survival: dead person's claim continues (their losses)
  • Wrongful death: new claim by survivors (their losses)
  • Both can be filed in the same case

Time Limits

  • Limitations: deadline from discovery of injury
  • Repose: absolute deadline from sale/completion
  • Minors: clock starts at age of majority

Special Damages Examples

  • Medical bills, lost wages, property damage
  • General: pain, suffering, emotional distress, consortium
  • Punitive: requires oppressive/malicious/fraudulent conduct

Exam Trap Alerts

1. Nominal vs. Punitive Damages

Do NOT confuse these. Nominal = tiny amount ($1) proving a right was violated with no real harm. Punitive = large amount meant to punish egregious behavior. They serve completely different purposes.

2. Survival vs. Wrongful Death

Survival = the DEAD PERSON's claim. Wrongful death = the SURVIVORS' claim. They compensate different people for different losses. The exam loves testing whether you can distinguish which is which.

3. Statute of Limitations vs. Statute of Repose

Limitations = clock starts when injury is discovered (or should have been discovered). Repose = clock starts when product is sold or building is completed (absolute deadline regardless of discovery). Do not mix them up.

4. Minor's Statute of Limitations Starts at Age of Majority

The clock does NOT start running for a minor at the time of injury. It starts when they reach the age of majority. This means injuries to young children can be sued on many years later.

5. Wrongful Death Did NOT Exist at Common Law

Wrongful death actions were created by statute. At common law, if the injured person died, the claim died with them. Survival statutes and wrongful death statutes were both legislative fixes to this harsh common-law rule.

Quick Reference Summary

Special Damages

Quantifiable losses: medical bills, lost wages, property damage.

General Damages

Hard-to-quantify losses: pain, suffering, emotional distress, consortium.

Nominal Damages

Token $1 award. Right violated, no actual harm.

Punitive Damages

Punishment for oppressive, malicious, or fraudulent conduct.

Survival Statute

Dead person's OWN claim continues through their estate.

Wrongful Death

NEW claim by survivors for THEIR losses from the death.

Statute of Limitations

Filing deadline from discovery of injury.

Statute of Repose

Absolute deadline from sale/completion, regardless of discovery.

Tolling for Minors

Clock starts at age of majority, not at time of injury.