Robert Ritchie’s Post

Some fantastic points made in this article!!

Once notorious for its exorbitant legal payouts in the form of nuclear verdicts, Florida has experienced a significant shift. The Sunshine State, which was previously ranked second in the nation for nuclear verdicts, or awards in excess of $10 million, has now fallen to seventh place. The reform measures appear to have not only impacted the size of awards and a reduction in the median settlement amount in the state. The turnaround is attributed to legislative efforts aimed at curbing legal system abuse, marking a pivotal moment in the state's legal landscape. This helps explain why nine property insurance companies have reduced rates and ten others have announced that they will not be increasing rates in 2024, on top of eight new companies having been formed in the state since reform measures were enacted. An analysis of the numbers paints a compelling picture of this shift. In 2023 post-reform, Florida saw a total of $491 million awarded in nuclear verdicts, with $316 million arising from state court decisions and $175 million from federal courts. These figures signify a significant deviation from the state's earlier staggering total of $33.2 billion awarded across 175 nuclear verdicts between 2009 and 2023, positioning Florida as the second-highest in the U.S. during this period. With a 27% nationwide surge in nuclear verdicts in 2023, it becomes evident that Florida’s reformation efforts stand out amidst this national trend. https://lnkd.in/epaJnVqE

Often heard during renewal meetings: "WE haven't had claims, why are OUR insurance costs rising?" Nuclear verdicts in civil litigation cases are becoming increasingly frequent and severe, according to an analysis by the U.S. Chamber of Commerce Institute for Legal Reform (ILR). These extreme jury awards of $10 million or more, dubbed “nuclear” for their devastating impacts on businesses, entire industries, and society at large, can have far-reaching consequences even when later reduced or thrown out by an appellate court. Based on preliminary data, the ILR said the median 2023 nuclear verdict was $23.8 million, generally on par with the previous two years. However, the number of reported verdicts greater than $100 million hit an all-time high of at least 23 last year, the report noted. Plaintiffs’ law firms and “lead generating” companies advertise extraordinary verdicts and shape potential jurors’ views of appropriate compensation, ILR said. Plaintiffs’ lawyers are also increasingly bringing litigation funded by third parties seeking a return on their investment, which not only enables such advertising and speculative claims but third-party litigation funding (TPLF) also contributes to nuclear verdicts by driving up award demands and widening the gap for parties to negotiate a reasonable settlement, according to the report.

As more states move to institute tort reform and caps on damages, the topics have become more central in jury selection. Most judges nowadays will allow a question about damages caps on a questionnaire, and in voir dire, jurors may offer expansive opinions on the issue. Whether its enough to warrant a cause challenge has been mixed—sometimes judges have an imperfect understanding of how damages will actually be argued and other times the caps are treated as independent of the trial court entirely. But it has been interesting to see awareness of the issue rise alongside the prominence of nuclear verdicts, even when its simply a result of eye-catching (and arguably oversimplified) headlines like this one. #jurytrials #litigation #tortreform https://lnkd.in/eAeJnnJk

Did you know that nuclear verdicts are reshaping the insurance landscape for construction businesses? Find out how to navigate the challenges. #Insurance #Litigation #MarshMMA

I'm a little tired of these headlines, you? In Florida - during the biggest litigation crisis in history - we complained, but we also got to work. For ten years, Florida defense attorneys practiced Insurance Offense instead of Insurance Defense, and Florida adjusters practiced Litigation Resolution instead of Litigation Management. The National P&C Market will spend $30B in Insurance Defense (DCC) this year (not including the $200B+ in litigation losses). Instead of pouring it into another googleplex of emails and memos, national insurers can invest a fraction of that $30B into the transformation to Insurance Offense and Litigation Resolution. Insurance Offense and Litigation Resolution means winning trials and negotiating strong settlements. Insurance Offense and Litigation Resolution happens when insurers invest in adjusters and attorneys, instead of paying attorneys to flood their computer screens with emails, memos, and diary alerts. Insurance Offense and Litigation Resolution means paying star adjusters and attorneys to win cases, instead of demoralizing them with bill review and word document templates. Just like in Florida, national litigation departments will defeat the litigation crisis when they make the litigation department the strongest and most respected department at the company. https://lnkd.in/eSsqVhc8

The rise of nuclear verdicts/settlements in jury awards have tripled in recent years, from $64M to $214M. A huge trend that's having a major impact on liability insurance costs and in turn, impacting an organizations productivity, partnerships and bottom line. Check out the #MarshMMA trends report here to learn more: #businessinsurance #riskmanagement #insurance

Interesting article on nuclear insurance claims verdicts provided by Zurich Group Chief Claims officer Tom Thornberry ☢️ “Thornberry highlighted a recent survey exploring juror behaviour which found that 76% of jurors believe that company executives will lie and cover up, while 30% believe it takes billions to “send a message” to corporations. Seventy-one (71) percent don’t think there should be any cap on jury awards, he said, and 45% have said they have ignored judges’ instructions. “From that environment, we’ve seen nuclear verdicts. In 2023, across 89 verdicts, juries awarded US$14.5 billion, a 15-year high.” When people stop believing in the integrity of the systems meant to serve us, it creates a ripple effect, eroding public confidence and weakening societal cohesion. Over time, company distrust (antitrust) can lead to employee or community disengagement, making it even harder for institutions to function and fix themselves. Ultimately lowering the willingness of employees to speak up about concerns that affect the safety of organizations, employees and the community. While the financial implications on litigation abuse are clear, the insidious destruction of faith in institutions is more detrimental to the community in the long term. Thankfully, several federal and state institutions exist to provide help to employees and independent contractors listed below. 1. The United States Department of Justice Antitrust Division 2. State Attorney General’s offices 3. State Consumer Affairs Divisions 4. The Federal Trade Commission 5. The United States Department of Labor 6. The United States Equal Opportunity Employment Division 7. State Departments of Insurance under Title 57 8. OSHA (Criminal Antitrust Retaliation Act) and/or (Clayton V. Sherman act) Each department extends jurisdiction over separate issues, but work together as one to find justice for citizens. So always highlight corresponding affected state legal statues in the outline of any report for classification and clarification or they will just return the concern 😕 Regardless of how large a company is, the strength of their “inner circle” or how many resources they have in the United States checks and balances exist to help seek justice for affected citizens. But you have to do your own research. 🧐 📖 If you’re a business owner, looking to protect your company from antitrust concerns, please contact us directly at 702-539-7969 extension #1 today as we are here to help. #Business #Insurance #Zürich #BusinessNews #InsuranceClaims #Litigation #Legal #Justice #Antitrust #NuclearClaims #Company #Research #Law #Farmers #Juror #Executive #FarmersInsurance #AntitrustProtection

What did you read in 2024? Follow along for the TOP 10 MOST READ #CLMMagazine articles. 💥 Number 7: Leveraging Nuclear Verdict Defense Methods at Mediation 💥 Accept responsibility, argue pain and suffering, give a number are not limited to trial tactics Written by: Lea Kapral, general manager of central claims, Acuity Insurance and Jennifer D. Akre, managing partner, Tyson & Mendes Published: March 05, 2024 ➡️ https://bit.ly/3Dz2Vfy #Insurance #ClaimsManagement #LitigationManagement #InsuranceDefense #SocialInflation #NuclearVerdicts #Mediation

Tom Thornberry, Group Chief Claims Officer at Zurich Insurance, sheds light on the alarming rise of litigation abuse, a trend that's impacting both the US and Europe. Key drivers include the influence of third-party litigation funders, the rise of nuclear verdicts, and emerging risks in sectors like PFAS. https://hubs.la/Q02_Bqqh0