Learned Hand
Billings Learned Hand (January 27, 1872 - August 14, 1961)—usually called just Learned Hand—was a famed American judge. Hand served on the U.S. District Court for the Southern District of New York from 1914 to 1924, and on the United States Court of Appeals for the Second Circuit from 1924 until 1951. Hand's judicial opinions are frequently considered classic formative statements of American contract and tort law. One of his most famous holdings comes from U.S. v. Carroll Towing, 159 F.2d 169 (2d Cir. 1947), concerning civil tort liability in a case alleging damage after a boat-owner's failure to adequately secure his vessel at harbor:
"[T]he owner's duty, as in other similar situations, to provide against resulting injuries is a function of three variables: (1) The probability that she will break away; (2) the gravity of the resulting injury, if she does; (3) the burden of adequate precautions. Possibly it serves to bring this notion into relief to state it in algebraic . . . terms: if the probability be called P; the injury, L; and the burden, B; liability depends upon whether B is less than L multiplied by P: i.e., whether B less than PL."
In other words, financial liability should only be imposed for a tort if the burden of preventing the injury does not exceed the magnitude of the injury multiplied by its likelihood of occurring. This rule is notable for its economic approach to a legal rule, an approach that is the foundation of the law and economics school of legal thought.
Hand's cousin, Augustus Noble Hand, was also a judge and also served on both the N.Y. Southern District and the Second Circuit courts substantially during Learned's tenure at each.
