Nuclear Verdicts

The “nuclear verdict” is a term recently coined to refer to unexpectedly high damage awards that appear to exceed rational parameters in civil cases. However, verdicts with monetary awards that far exceed expectations, and/or that are considered to be inflated, outlandish or even destructive, have been considered to be a problem for at least a generation (thus the phrase “old wine, new bottles”). Despite this history, a recent and somewhat sudden growth in concern among the insurance industry and defense litigators has precipitated a renewed sense of alarm connected with damage awards that appear to be spiraling out of control, with the implication that this trend has taken hold in a more pernicious manner within recent years.

In this article understand:

• The definition of a nuclear verdict
• The historical background of nuclear verdicts
• The five causative factors of nuclear verdicts
• The goal of control