The Gjording Fouser team attended the Idaho Association of Defense Counsel’s (IADC) annual meeting where Jill Cranston Rice, a partner at Dinsmore & Shohl LLP in West Virginia, gave a presentation titled “Not Just Monopoly Money: Combating Nuclear Jury Verdicts.” Below is a summary of Ms. Cranston Rice’s presentation.
WHAT IS A “NUCLEAR VERDICT?”
Nuclear verdicts are exceptionally high jury awards that surpass a reasonable and rational result, something that shocks the conscience. These verdicts have historically happened in areas that are less conservative. However, most recently, we have seen them happen in jurisdictions across the board. Why? In recent years, our country has faced unprecedented issues that have caused a general sense of distrust in our society, causing anti-corporate attitudes. The public now has a more cynical view of corporations, hospitals, insurance companies, etc., than ever before and is using these nuclear verdicts to punish them for what they view as “corporate greed.” This gives juries the sense of an ability to level the playing field and redistribute wealth. Also, because of the greater media coverage of litigation, people are becoming desensitized to large sums of money.
HOW PLAINTIFFS ACHIEVE THESE VERDICTS
The significant increase in litigation funding for Plaintiff’s counsel has practically eliminated the risk for them to take cases to trial. They are capitalizing on the public distrust of corporations and encouraging jurors to think with anger and emotion, not facts. They paint the picture of a corporate monster who does not care about safety and only cares about financial gains. Counsel will throw out these irrational sums of money early in the case, sometimes even during jury selection, to prime the jury to hear the evidence through with that expectation.
HOW TO DECREASE THE LIKELIHOOD OF A NUCLEAR VERDICT
It is imperative that jurors trust counsel for the defense as much or more than counsel for the plaintiff. To do that, counsel must present a compelling and consistent theme that humanizes the client corporation, even if that means putting a face to those within the corporation who share the fault. It is easier to condemn a faceless corporation that profited $2 million last year than it is Jane Smith, who has worked for the corporation for twenty years and always brings donuts in on Friday morning to the staff meeting. By being authentic and conscious of how they are making the jury feel, counsel can build a solid rapport starting even as early in the case as jury selection. This can also be accomplished by explaining in great detail the culture of the corporation and how that culture supports safe practices and adherence to rules and regulations.
INSIGHTS FOR GF CLIENTS
These nuclear verdicts do not just have monetary consequences. They can affect how people do business or even shift the standard of care. Specifically in the trucking industry, nuclear verdicts are up 300%, soaring from $2.6 million in 2012 to $17 million 2019. These verdicts can, and will, continue to cause insurance premiums to rise significantly. In Idaho, this could greatly affect small business owners who do not have the financial resources to absorb large losses.
Please contact a Gjording Fouser lawyer at 208.336.9777 if you would like any additional information about this topic or any other issues facing your company.