SAN DIEGO – The best way for companies to protect themselves from the threat of a nuclear verdict is to get away from the idea of not discussing losses in front of jurors, an industry expert said.
Nuclear decisions are affecting “every industry” and companies should take aggressive steps to counter a strategy called anchoring, healthcare leader Bill Bower, executive vice president of Gallagher Bassett Services Inc., said during a session at RiskWorld on Monday. Risk & Insurance Management Society Inc. Annual conference of.
Anchoring is a cognitive bias that occurs when individuals use an initial piece of information to make subsequent decisions. Mr. Bower said plaintiffs’ lawyers routinely use anchoring during trials to convince a jury how much a person should be awarded for an injury.
While this principle is not new to companies defending claims, the stakes have become much higher due to the “alarming” increase in the rate of nuclear verdicts, Mr. Bower said, noting that general liability losses are up compared to last year. Has increased by 57.4%. Consumer price index increased by 10.5%.
“When I first started hearing cases, it was taboo to suggest to the jury what the verdict should be. It was all about responsibility,” Mr Bower said.
He said defendant companies can overcome the initial situation by addressing the issue when the case is first filed and introducing the principles of value and damages during the discovery process. Companies should continue to address anchoring during the jury selection process and present evidence during trial on appropriate damages and alternative awards.
“Great vision without execution is hallucination. We at the defense bar have to start executing our plan to establish damages, because the jury is going to want to hear it and if we do that the jury will not penalize us on liability,” he said.
