ORIGINS OF THE TORT REFORM MOVEMENT

The tort reform movement in the United States reached its peak during 1986, when 39 states passed legislation to limit court awards. The explosion of litigation and jury awards in the US. frequently was stated as the cause for the liability insurance crisis. This paper explores the origins of the tort reform crisis. It concludes that the crisis was produced by the natural instability of the liability insurance industry and by the impact of technology on specific coverage lines. Copyright 1988 Western Economic Association International.