Posner on "Jackpot Justice"

Richard Posner is skeptical about a recent study "Jackpot Justice" estimating the cost of the tort system at $865 Billion/year. Posner points out a number of mistakes such as double counting the rent-seeking costs, mistaking transfers (payments from plaintiffs to defendants) with actual costs (reductions in total resources), and some rather arbitrary assumptions. This reminds me of first rule of evaluating a benefit-cost analysis: determine who is paying for the study.