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Social, Economics

Prediction: The line will blur between moral damages and punitive damages

Social, Economics
International Casualty
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Prediction

The growing number of nuclear verdicts will prompt further lobbying by defendant organisations to progress tort reform in the US at state and federal levels. Civil juries continue to award multi-million and billion-dollar verdicts, arguably aimed at punishing defendants rather than compensating claimants. These awards are often significantly reduced on appeal, creating uncertainty for defendants, their insurers and plaintiffs. One such instance saw a reduction in a glyphosate-related cancer claim from $2.25 billion to $400 million. Any efforts to reduce awards for punitive damages may prompt reconsideration of other tortious concepts including moral damages. Although punitive damages in civil cases are largely limited to the US, there has been a move towards awarding increased moral damages to reflect serious cases of negligence and the protection of human rights in Latin America, particularly Mexico. In the event of tort reform limiting punitive damage awards, US plaintiff representatives may look to develop a similar concept of moral damages in order to maximise compensation for their clients.

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