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Tuesday, March 20, 2007

Regulation by Litigation - Oil Industry Edition

David Michaels has a post up regarding the BP plant explosion and the value of litigation in regulation, in particular contending that litigation provides a greater incentive to prevent Bad Things than OSHA or similar regulators:

I’ve heard it said many times that if you go behind closed doors and ask a CEO which one he fears most – OSHA or lawsuits – the answer always is lawsuits. Inspections by OSHA and the CSB may help keep workplaces safe and employers honest, but neither can hold a candle to the power of litigation as a way to encourage the safe operation of factories.

http://lawprofessors.typepad.com/tortsprof/2007/03/regulation_by_l.html

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