Recounting the Hurricane of 1938: local memories of a regional disaster

The Hurricane of 1938 was one of those defining moments that divide time into parts that either precede or follow. It was transformative, impacting human lives and settlements as well as natural systems, coastal and inland, aquatic and terrestrial, with a force unsurpassed in the region’s living memory. Seventy years have now passed since that hurricane made its historic landfall on the afternoon of September 21, 1938. Humans have regrouped and rebuilt and nature has regenerated and reclaimed, but the memories of those who lived through the Hurricane of ‘38 remain.

The Social versus Private Incentive to Sue

The private value of lawsuits is based on plaintiffs' expected recovery at trial compared to their filing costs, whereas the social value consists of the incentives suits create for injurers to invest in accident avoidance. Generally, there is no relationship between these two values: there may be either too many or too few suits from a social perspective. Thus, there is scope for corrective measures, although there is no simple policy. Extending the model to consider a negligence rule rather than strict liability, and to allow for pretrial settlements, leads to some modified conclusions but does not alter the basic insights.