Welcome to LearnLawBetter. Did you just read US v Carroll and discover the Learned Hand
Formula? Are you trying to figure out how to use B<PxL? Are you a humanities major who
thought you would never see algebra again? Stay tuned to the end as I explain how to
use the formula on an exam and in the practice of law. Also, don’t forget to hit the share
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Hi, this is Beau Baez and today I want to
talk to you about the Learned Hand formula, which comes out of the US v Carroll case that
I discussed in another episode. In establishing that the defendant had breached his duty of
care, Judge Learned Hand decided to discuss unreasonableness by using algebra rather than
English. In negligence trials, when the standard of
care is the reasonably prudent person, juries use their common sense in deciding if the
defendant was unreasonable. Learned Hand was uncomfortable with using this unstructured
approach, so he decided to explain unreasonableness with the formula B < P x L, where B is the
burden of taking adequate precautions, P is the probability of harm, and L is the gravity
of the harm. In my last episode, I walked through the analysis of US v. Carroll using
this formula. Today, we would call the Hand formula either
a cost-benefit or a risk-utility formula. So first, let’s look at it from a cost-benefit
perspective. The cost is what the wrongdoer is potentially imposing on society, and the
benefit is what the wrongdoer received for his action or inaction. In US v. Carroll,
the potential cost was the barge coming unmoored and sinking, and on the other side of the
equation was whatever benefit the sailor received by his unauthorized day off in New York City.
When we compare the two, we can safely conclude that the sailor’s conduct was unreasonable
since the cost he imposed on society far outweighed his sightseeing excursion.
Now, let’s look at this from a risk-utility perspective. This is where we compare the
risk imposed through the action of the defendant, with the utility of what he did. Going back
to US v Carroll, the risk the sailor imposed is the boat’s possible damage. And the utility
was a day of fun in New York City. Since the risk he imposed was greater than the utility
he received, the conduct is viewed as unreasonable and therefore a breach of duty.
Let’s shift focus and think about how to use this on an exam or in real life. In practice,
you will never use this formula with a jury. Also, on an exam, there is no need to cite
to the formula. By the way, Learned Hand never meant the formula to be cited at jury trials.
What Learned Hand, and your professor wants, is for you to use the thought process that
is imbedded in the formula. Pretend it is exam day and you just finished
discussing duty. The next paragraph will discuss breach of duty, and will start something like
this. The next issue is whether the sailor breached his duty of care by failing to remain
on the barge. Breach of duty is conduct that falls below the standard of care, which in
this case requires a determination of whether the conduct was unreasonable. By the way,
I hope you notice that I am using the IRAC formatting method, which I discuss in one
of my other episodes. Okay, on to the analysis portion of the essay.
In determining unreasonableness, all of the circumstances must be examined. The harm occurred
on a barge in a very busy harbor during war time. It is clear that the barge would not
have sunk if the sailor had been on board, as required by his contract. He abandondend
his post, without a good reason, thereby endangering his boat and other boats in the harbor. Because
of the danger he imposed, and which in fact did occur, his conduct was unreasonable and
amounts to a breach of duty. I hope you noticed that I never used B<PxL
or used the phrases cost-benefit or risk-utility. And that is how the Learned Hand formula should
be used—as a way for you to think of the risks, the benefits, costs, and utility, and for
you to then use them in determining if the conduct was reasonable or unreasonable.
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