Navigating the Rise of Nuclear Verdicts: A Guide for Senior Living Operators



In recent years, the phenomenon of nuclear verdicts—jury awards exceeding $10 million—has become increasingly common in the U.S. This trend is driven by a combination of public anger towards corporations and the desire to hold them accountable for perceived wrongdoings. For senior living operators, understanding and mitigating the risks associated with these outsized verdicts is crucial.

The Rise of Nuclear Verdicts

Nuclear verdicts are not a new occurrence, but their frequency and magnitude have grown significantly. In 2023 alone, the number of cases with awards over $10 million increased by more than 27%. High-profile cases, such as the $725 million verdict against Exxon Mobil and the $900 million award in a sexual battery case, highlight the potential financial impact on businesses.

Factors Driving Nuclear Verdicts

Several factors contribute to the rise of nuclear verdicts:

• Public Sentiment: Many Americans view large corporations as part of the 1%, leading to a form of class warfare in the jury box.
• Desensitization to Large Numbers: Jurors are becoming less sensitive to the magnitude of financial awards.
• Litigation Funding: Increased availability of funding for plaintiffs helps sustain lengthy and expensive legal battles.

Protecting Senior Living Operators from Nuclear Verdicts

Senior living operators can take several steps to protect themselves from the financial and reputational damage of nuclear verdicts:

1. Enhanced Risk Management: Implement comprehensive risk management strategies to identify and mitigate potential liabilities. Regularly review and update safety protocols, staff training, and resident care procedures.
2. Insurance Coverage: Ensure adequate insurance coverage to protect against large verdicts. Work with insurance brokers to understand the limits and exclusions of policies and consider purchasing excess liability coverage.
3. Legal Preparedness: Develop a robust legal strategy to handle potential lawsuits. This includes having experienced legal counsel, conducting mock trials, and using jury consultants to gauge potential outcomes.
4. Transparent Communication: Foster open and transparent communication with residents and their families. Address concerns promptly and empathetically to build trust and reduce the likelihood of litigation.

By proactively addressing these areas, senior living operators can better navigate the challenges posed by nuclear verdicts and continue to provide high-quality care to their residents.