Hand Formula (Carroll Towing)

Pronunciation: HAND FOR-myoo-luh (KAIR-ul TOH-ing)

Torts › Breach

Definition

Judge Learned Hand's algebraic formulation of negligence from United States v. Carroll Towing Co. (2d Cir. 1947): a defendant is negligent when the Burden of precaution (B) is less than the Probability of harm (P) multiplied by the gravity of the Loss (L). If B < P × L, the defendant should have taken the precaution and failure to do so is breach. This cost-benefit analysis is the foundation of the economic approach to breach and is used by courts to evaluate whether a defendant's conduct was reasonable.

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