I think most of this has come about because of the 'ambulance-chasing' lawyers and the 'No win-no fee' cowboys.
The American idea of massive payouts first reared it's ugly head when the Piper Alpha disaster happened. Rescue helicopters were having difficulty landind at Aberdeen because some of these American lawyers in private jets were hogging runway landing slots and local airspace even when they were ordered by air traffic to keep a certain approach direction clear.
It then went from bad to worse when the proliferation of No win-No fee companies set up. Just take the example of the guy who's inquest was only last week (his name slips my memory). He 'went bust' owing lord knows how much in wages and to clients, but he had a £m home in the UK and a luxury yatch in the Med.
Just Google 'accident compensation' and you see why companies and councils are frightened of people having accidents, because even if an accident is through the person's own stupidity, these spiv lawyers can get them £1,000's in compense. Then the costs are out of this world to pay for these cowboys and the company that runs them.
dave