Headline verdict amounts continue to rise, dragging up settlement values and turning claims scenarios into high-stakes negotiations. Alan Russo and Marie Castronuovo were part of a panel of insurance defense experts discussing the rise in nuclear verdicts at a DRI webinar in March. They discussed how new research and strategies are helping insurers to better assess, triage and limit their litigation liabilities, and how to counter an increasingly better funded, coordinated and sophisticated plaintiff's bar. 

Marie talked about trends in damage awards, noting that “plaintiffs attorneys have done a very good job of increasing these awards.” Alan provided some data that demonstrates the trends. In looking at verdicts related to trucking accidents from 2006 - 2019, the numbers have been going up. “From 2006 - 2011, there were 26 cases with verdicts over $1 million,” Alan shared. “From 2011 - 2019, there were nearly 300 verdicts over $1 million.”

In thinking about how insurance companies and defense counsel can counter the rising trends in awards, Marie suggested that insurance companies focus on preparation. “Get in front of the cases; line up your witnesses, your discovery documents.” In addition, she suggested researching litigation funding companies by checking on the UCC liens they are required to file; those records should show the plaintiff, the funding company and, possibly, the amount loaned.

Alan noted that insurance companies would do well to invest wisely in defending cases early on and to consider some of the tools used by the plaintiff’s bar, particularly advertising. “The plaintiff’s bar is constantly messaging about this area of practice and about damages awards in their advertising for clients.” The insurance industry can use the same tools to get their own messages out.

AM Best sponsored the program, “Avoiding Nuclear Meltdown: How Insurance Counsel Are Working to Constrain Generous Juries.” The recording is available here or on demand on DRI’s website.