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The calculus of negligence is a term coined by justice Learned Hand and describes a process for determing whether a legal duty of care has been breached (see negligence). The original description of the calculus was in U.S. v. Carroll Towing, 159 F.2d 169 (2d Cir. 1947) where Hand stated:- [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.
This relationship been formalised by the law and economics school - an act is in breach of the duty of care if:
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where B is the cost (burden) of taking precautions, and P is the probability of loss (L).
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