Texts: Please read the Wall Street Journal article titled “Businesses Find Suits on Security Hard to Defend” (housed in Modules) before answering the questions given below. (16 points)
In its ruling against Vic Regnier Builders, the Kansas Supreme Court implied that businesses “must take all economically feasible steps to provide a reasonable level of security,” but attorneys representing businesses are bothered by the ruling because “it’s almost impossible to know just how much more security is ‘reasonable.’”
How can economic analysis be used to determine what constitutes “reasonable” security measures? Graphical analysis is recommended but not absolutely required to explain/demonstrate what constitutes “negligence” in this case from an economic perspective.
Consider the following hypothetical ruling by Justice I. M. Wopner in this case: “I find Vic Regnier Builders guilty of negligence. A violent crime occurred on the defendant’s property because the defendant did not take reasonable measures to prevent the accident. The annual cost of installing and maintaining new lighting in the garage was $5,000, and adding a night security guard would have cost an additional $12,000 per year. If these investments had been undertaken, then the probability of a violent crime occurring to visitors would have been reduced from 3% to 2% each year.”
If the average damage from a violent crime is $2 million dollars, explain whether you agree with the economic logic of Judge Wopner’s ruling.
(2) How might you employ the ideas of comparative or contributory negligence to create a dissenting opinion to Judge Wopner’s ruling?
LAW Court this summer, evidence of The decision puts property all previous crimes can go before owners in a sticky position Businesses Find a jury. And additional factors because they may have to beef such as lighting and other safely up security and because it's Suits on Security features can also be considered almost impossible to know just by jurors. how much more security is Hard to Defend California, Florida, Louisiana "reasonable." Attorneys say what and South Dakota, among other is reasonable varies case by By Judy Woo states, also now use broad case, depending on industry and Staff Reporter of The Wall Street Journal standards, which in the past local norms. It's getting tougher for business several years have been It's very hard for business to defend themselves against embraced by most courts that owners to apply, said David W. lawsuits accusing them of have taken up the issue. Hauber, the Kansas City, Kan, shoddy security. In the Kansas case, for attorney for the parking-garage The suits are typically filed by instance, a woman was shot by a owner. Our experts indicated victims of violent crimes robber in an underground that this was a low-crime area." committed on business premises. shopping-center garage owned Property owners face an extra Now courts are applying a new by Vic Regnier Buildings Inc., in headache if their state has a legal standard that allows jurors Overland Park, Kan. Because consumer-protection act. A to consider a multitude of safety her attorney offered no evidence growing number of attorneys for issues and makes it easier for of previous crimes there, a lower crime victims are suing under victims to win suits. court dismissed the case before such acts because victims can And they're winning big. An trial. recover more than they would if eight-year study by Liability But the Kansas Supreme Court they just sued for negligence. Consultants Inc. found the aver- reinstated the lawsuit and sent it For example, a tenant of Berry age jury verdict for a rape on a back to a lower court. A nearby Property Management Inc. of business premises to be $1.8 parking lot had been the site of a Corpus Christi, Texas, accused million. For a death, jurors robbery, car break-in, and two the company of negligence and awarded $2.2 million. The foiled robbery attempts, the high violating the state's deceptive Framingham Mass. security court noted. In addition, the trade practices act after she was consulting company compiled the garage itself was poorly lit. raped by an intruder. She had survey results from verdicts The state Supreme Court ruled asked for an extra door lock but voluntarily reported by attorneys that victims' attorneys should be was told by the company, which to a national group of plaintiffs allowed to present evidence of is under new management, that lawyers. such incidents to juries. One her lease didn't allow it. In fact, Some of the biggest verdicts should not be able to open an all- however, Texas landlords must are coming in this area, said F night, poorly lit parking lot in a install a night latch if a tenant Robert Radel II, a Tampa, Fla dangerous high crime area of an wants one lawyer who defends businesses. inner city with no security and The woman won $16 million in The cases are becoming more have no legal foreseeability until state court last year, and a state and more frequent, and the after a substantial number of appeals court upheld the verdict. standards are becoming more one's own patrons have fallen Berry Property Management has and more liberal." victim to violent crimes, the court asked the Texas Supreme Court Under older standards still said in its decision. Businesses to review the case. used in some states including don't have to guarantee patrons The courts and the juries are New York, companies are liable safety. the court added. But they really, in our opinion, making for crimes that are similar to must take all economically some outrageous liability claims previous crimes committed on feasible steps to provide a for Continental Insurance Co., their property. For instance, an reasonable level of security. a large commercial insurer and a apartment owner would likely be This is a great ruling for unit of Continental Corp., New held liable for a rape if two victims of violent crime, but a York. I guess the position most previous rapes took place on his difficult one for property owners, people on juries are taking is that property. Evidence of dissimilar said Scott Jacobs, editor of all crime is foreseeable. It's crimes would be excluded Mealey's Litigation Report: because we live in such a violent Under the new and more Premises Liability, a Wayne, Pa. society. It's terrible. popular standard, most recently newsletter that tracks such adopted by the Kansas Supreme cases.
