Difference between revisions of "Hand rule"
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Hand ruleis a rule of adjudicating negligence in [[tort]] lawsuits, devised by Judge [[Learned Hand]].
Latest revision as of 08:33, 6 February 2010
The hand rule can be formulated simply as follows,
In the formula, B denotes the cost of necessary precautions to prevent the accident that would trigger a tort lawsuit, while P is the probability of such accident, and L is the loss from the accident. PL, then, is the expected loss. If as the formula states, the cost of precaution is smaller than expected cost, then the party must exercise that precaution and is liable of the loss if the precaution was not exercised.