Effect On The Development of American Law
Survivors were unable to recover damages in court because of the club's lack of resources. First, the wealthy club owners had designed the club's financial structure to keep their personal assets separated from it and, secondly, it was difficult for any suit to prove that any particular owner had behaved negligently. Though the former reason was probably more central to the failure of survivors' suits against the club, the latter received coverage and extensive criticism in the national press.
As a result of this criticism, in the 1890s, state courts around the country adopted Rylands v. Fletcher, a British common-law precedent which had formerly been largely ignored in the United States. State courts' adoption of Rylands, which held that a non-negligent defendant could be held liable for damage caused by the unnatural use of land, foreshadowed the legal system's 20th-century acceptance of strict liability.
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