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Juries are going “nuclear” with greater frequency, reports the Wall Street Journal. This further confirms a trend making insurance costly and more complex to obtain.
The number of cases where a jury awarded more than $10 million—what’s called a nuclear verdict—grew more than 27% in 2023. That’s according to Marathon Strategies, a communications and research firm.
In a recent report, the U.S. Chamber of Commerce said that the number of verdicts above $100 million reached a record in 2023. That’s up nearly 400% from 2013.
Data shows product liability claims, auto crashes, and medical liability cases make up nearly three-quarters of awards above $10 million.
What they told the WSJ:
“Folks vote two ways: in the ballot box and in the jury box,” said Seth Gillston, the head of North America industry practices for Chubb. “People are just desensitized to the numerical value, [and] that’s coupled with the fact that people are angry.”
“It’s becoming more and more like class warfare, where the 99% is against the 1% and the corporate defendant is seen as the 1% and the juries are using their jury service as an opportunity to affect change in society and to balance power,” said Jason Bloom, a Dallas-based jury consultant who has worked for both plaintiffs and defendants.
“Lawsuits are good for society,” said Gary Dordick, a lawyer who secured the $900 million verdict against entertainment billionaire Alki David. “Lawsuits and the right to hold corporations accountable are what make them do the right thing. Left to their own devices, they would not.”
The big picture: These large jury awards drive up the cost of goods and services as businesses pass on their higher insurance costs.
Insurers will likely continue pushing states to change their legal systems to reduce costs. However, in the short term, businesses might have to cope with less insurance availability.
Go deeper: Read the full article on nuclear verdicts at wsj.com (subscription may be required)
