Schwartz: How to Curb "Social Inflation" in Lawsuit Damages
The past decade has seen a major increase in the amount of damages awarded in civil lawsuits, which has far eclipsed general economic inflation, including the recent cost increases seen for many goods and services. This phenomenon has been labeled “social inflation,” and it permeates the entire universe of personal injury and other liability claims.
According to a recent study, the median award for verdicts above $1 million rose from $8.2 million to $10.3 million for general liability awards between 2010 and 2019 and from $6.1 million to $7.9 million in motor vehicle negligence cases. This shows that juries are awarding more damages than ever, but why?
