William R. Bennett III and Holli B. Packer ●
Introduction
The maritime industry, long governed by a unique set of laws and traditions, is facing a new and formidable challenge: the rise of “nuclear verdicts” in personal injury cases, particularly those involving Jones Act seamen. These outsized jury awards, typically defined as verdicts of $10 million or more, are reshaping the landscape of maritime litigation, insurance, and risk management.[1] As the frequency and size of these verdicts increase, shipowners, insurers, and maritime employers are grappling with the implications for business operations, insurability, and the broader rule of law.
Drivers of Nuclear Verdicts in Jones Act Cases
Nuclear verdicts are not a new concept in American tort law but their proliferation in maritime personal injury cases is a relatively recent trend. The Jones Act grants seamen the right to a jury trial and, in many cases, access to state courts, which have proven more likely than federal courts to produce nuclear verdicts. In the context of the Jones Act, these verdicts pose serious financial consequences for shipowners and their insurers. Insurers must analyze future risk and consider the possibility of a nuclear verdict, and at the same time quote a reasonable premium.
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