Victim Compensation Funds and Tort Litigation Following Incidents of Mass Violence PAUL HEATON† IVAN WAGGONER JAMIE MORIKAWA INTRODUCTION How do victim compensation funds (VCFs) impact a victim’s likelihood to sue using the tort system? This issue is of more than theoretical interest, as VCFs have become a seemingly ubiquitous feature of the policy landscape following high-profile tragedies. For example, following the September 11, 2001, terrorist attacks, Congress created a special compensation fund for victims who waived their right to sue.1 After being swarmed with thousands of donations in the wake of the Virginia Tech massacre, Virginia Tech established the Hokie Spirit Memorial Fund to provide † Paul Heaton (
[email protected]) is a senior fellow at the University of Pennsylvania Law School, 3501 Sansom St., Philadelphia, PA 19104, and an adjunct economist at the RAND Corporation, Jamie Morikawa (
[email protected]) is a researcher and Ivan Waggoner (
[email protected]) an adjunct researcher at the RAND Corporation, 1776 Main St. Santa Monica CA, 90407. The research was supported though RAND’s Institute for Civil Justice (ICJ) core funding program, which pools contributions from a diverse set of sources with differing perspectives on the civil justice system, including corporations, foundations, individuals, plaintiff and defense-oriented law firms, and trade and professional associations. We gratefully acknowledge a number of individuals who helped to improve this research, including Ken Feinberg, whose thoughtful conversations on VCFs provided an impetus for the research, and James Anderson, Lloyd Dixon, Steve Garber, Gillian Hadfield, Angela Hung, Malini Moorthy, and Nick Pace who offered helpful comments on drafts.