ECONOMIC ANALYSIS OF PROPORTIONAL LIABILITY

Abstract

Subject matter of this paper is the efficiency of proportional liability in relation to other forms of liability. For this purpose the standard economic models developed in the American theory of Economic Analysis of Law (EAL) are used. Based just on the economic arguments, the authors wish to determine whether there is justification for the regulation of proportional liability in our legal system on the basis of certain solutions of the so-called Principles of European Tort Law (Principles).

The first part of the paper deals with the economic implications of proportional liability in relation to other forms of liability, with an emphasis on the efficiency of proportional liability in case of uncertainty over causation. The second part analyzes the solutions in the Principles and the Serbian Code of Obligations in the case of alternative causation, and judicial practice in Serbia and the USA relating to this form of liability. In conclusion, the authors argue in favor of regulation of proportional liability in Serbian law on the basis of some innovative solutions in the Principles.