U.S. Chamber of Commerce Institute for Legal Reform

In recent years, the growing trend of nuclear verdicts has captivated headlines. But what exactly is a nuclear verdict? Nuclear verdicts refer to jury awards exceeding $10 million, often in personal injury or wrongful death lawsuits. These verdict awards have surprising rippling effects on businesses, insurance premiums, and even your wallet. https://lnkd.in/e8Hbi4N8

A plaintiff once sued a dry cleaner for a staggering $67 million over misplaced pants, a lawsuit that epitomizes the absurdity plaguing our legal system. According to our research, in the broader landscape of class actions, consumers typically pocket a meager $32 while lawyers walk away with nearly $1 million. These frivolous lawsuits are more than just laughable—they're a symptom of a flawed civil justice system. https://lnkd.in/g34GeA3z

On June 12, the House Judiciary Committee held a hearing on the need for oversight in the third party litigation funding industry. The hearing witnesses, including retired House Judiciary Committee Chairman Bob Goodlatte (R-VA), George Mason National Security Institute Visiting Fellow Paul Taylor, and Law & Economics Center Executive Director Professor Donald Kochan, called attention to the urgent need for federal legislation to increase transparency and regulate the burgeoning TPLF industry, which has grown into a multi-billion-dollar business largely shrouded in secrecy. Here are the major takeaways: https://lnkd.in/eSYWE_DQ

Nuclear verdicts (jury verdicts worth $10 million or more) are escalating, driving up costs and undermining the rule of law. Our latest research diagnoses a range of phenomena that drive nuclear verdicts, including trial lawyer advertising, third party litigation funding, and plaintiffs’ lawyer tactics like the reptile theory, and concludes with a set of solutions that policymakers can implement. https://lnkd.in/exd5rhHS

PBS recently aired a gripping, true-life story of a legal system run amok. “Mr. Bates vs. The Post Office” shows how a group of British postmasters were doubly abused—first by false accusations of theft and accounting fraud that left many in financial ruin or prison; second, once the truth came out, by a lawsuit where litigation funders and plaintiffs’ lawyers took more than 80 percent of the settlement before the postmasters saw one cent. Enacting commonsense reforms like transparency, ensuring plaintiffs get paid first, and holding funders financially responsible for funding bad lawsuits would go a long way toward reining in the third party litigation funding industry. https://lnkd.in/enBgu7Ay 

Are you a current law student who is interested in legal reform? Apply for our fall internship!

According to a report from the U.S. Chamber of Commerce Institute for Legal Reform, nuclear verdicts of $10 million or more are on the rise. The prevalence of nuclear verdicts is having significant and negative consequences in the insurance market (for both the carrier and the consumer). Here are 5 examples: 1. Premium Increases 2. Underwriting Challenges 3. Claims Management 4. Reserve Adequacy 5. Reinsurance Costs #nuclearverdicts #insurance #trends2024

The number of nuclear verdicts, or verdicts worth $10 million or more, dropped off significantly during the COVID-19 pandemic but quickly rebounded to near-record highs by the third quarter of 2021, according to a new study authored by Shook Partner Cary Silverman and Senior Counsel Christopher Appel and published by the U.S. Chamber of Commerce Institute for Legal Reform. “Nuclear Verdicts: An Update on Trends, Causes, and Solutions” analyzes nuclear verdicts in personal injury and wrongful death cases between 2013 and 2022 and highlights national and state trends, the causes of nuclear verdicts, real-world implications and solutions. Read more: https://lnkd.in/gsy_YjjZ

Nuclear verdicts continue to drive up the costs of goods and services, impact insurance and shake the predictability of the rule of law. A recent report by the U.S. Chamber of Commerce Institute for Legal Reform suggests the issue of #nuclearverdicts is getting worse. Read the full report through the link below. #LegalProfessionals #LegalNetwork #LawFirmCulture #LegalCommunity

Louisiana has no laws on the books requiring transparency of these litigation funding agreements. Fortunately, Louisiana policymakers have an opportunity to address the problems this shadowy industry causes in its lawsuit system. The Legislature has passed SB 355, which would increase transparency and oversight of TPLF agreements in all civil cases before Louisiana courts. The sooner SB 355 is enacted into law, the sooner Louisiana can strengthen its defenses against potential threats to its civil justice system. https://lnkd.in/e24msVSY