That suggests that his behavior was clearly inefficient, so we need not worry about over deterring it. In the case of a deliberate tort, that is less of a problem. Punitive damages may be more, sometimes much more.
The next step is to separate precautions into observable and unobservable ones. And under this rule, the court no longer needs to either observe or evaluate precautions, so it requires less information than under a rule of either negligence or contributory negligence.
But in the real world, information is imperfect, litigation is costly, and courts less than omniscient. It is important to remember, however, that the intent is not necessarily a hostile intent or even a desire to do serious harm.
I do it. If I hurt my hand because a Coke bottle explodes, liability law may reimburse me for the loss, but if I slip on my own icy front stairs and hurt my hand, there is nobody to sue but myself. So one way of viewing punitive damages is as a tool for enforcing a property rule.
But why express outrage by giving a windfall gain to the victim? As we learned in Atlanta Oculoplastic Surgery v.
One reason why that may be a sensible rule will be discussed in chapter