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Does Non-Monetary Relief Prevent Tort Victims from Claiming Damages? An Empirical Study

Previous research has demonstrated the importance of non-monetary relief such as apologies and an acknowledgment of fault. This type of relief has been found to increase victims’ emotional well-being, and to reduce the number of claims as well as the amount of damages paid to claimants. Other studies have casted doubts, suggesting that providing non-monetary relief may be associated with claim and payout increase. This research analyzes the effects of obtaining non-monetary relief prior to the damages procedure on the probability of claiming damages. For this, a unique dataset for a particular procedure was examined. In this procedure, the decision to claim damages followed – and was therefore separated from – the liability (fault) determination. It is found that offering or providing non-monetary relief prior to the decision to claim damages increases the probability of victims claiming damages. Unlike in previous research, this finding cannot be explained by victims who claim damages after being alerted by the non-monetary relief. Alternative explanations are discussed.