Penalties for Foodborne Illness: Jury Decisions and Awards in Foodborne Illness Lawsuits

Omchand Mahdu, Kathryn Boys, Leon Geyer and Michael Ollinger

No 205810, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: This study examined how various case attributes impact plaintiff success and payouts in jury settled FBI lawsuits. Given the risk to firms in terms of potentially large payouts, future litigation, and lost reputation, the results may provide economic incentives for food firms and others in the supply chain to produce safer and better quality foods. Reviewing the outcomes of 511 FBI jury trials between 1979 and 2014, plaintiffs won approximately 35 percent of the cases, receiving a median award of $32,264. The Heckman Two-Step procedure was performed to examine the effects of various factors on plaintiff success rates and subsequent amounts awarded. Plaintiff chances of victory increased if lawsuits involved a child, foodborne pathogen was identified and pain and suffering was claimed, and decreased if defendants used of one or more expert witnesses or had “deep pockets”. Cases involving a child, chronic complications, or defendants with “deep pockets” resulted in higher awards.

Keywords: Consumer/Household Economics; Food Consumption/Nutrition/Food Safety (search for similar items in EconPapers)
Pages: 62
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205810

DOI: 10.22004/ag.econ.205810

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