Liability Litigation Trends: Increased Claims and Attorney Representation

The latest report from Sedgwick, titled ‘Liability Litigation: Observations and Trends 2024,’ reveals a rise in attorney representation and litigation rates for liability claims. Key drivers include changes in Florida’s tort reform and evolving tactics from the plaintiffs’ bar. The report details a significant increase in claims filed in Florida ahead of the HB 837 tort reform, with new cases in March 2023 exceeding previous records by 127%.

Attorney representation has surged, with general liability bodily injury (GL BI) claims seeing an increase from 14.1% in 2022 to 17.2% in 2023, and auto liability bodily injury (AU BI) claims rising to 47.7%. While overall litigation rates remain low, the early involvement of attorneys in claims is notable, with 74.2% of GL BI claims and 85.5% of AU BI claims having attorney representation within 14 days of reporting.

From an industry perspective, liability litigation continues to grow. Data from Lex Machina’s June 2023 Insurance Litigation Report shows a 30% increase in federal-level insurance cases from 2021 to 2022. Sedgwick’s data reflects a similar trend, with new claim litigation for GL BI claims rising slightly to 1.7% in 2023, primarily driven by the volume of filings in Florida.

Third-party litigation funding remains significant, though it saw a dip in 2023 due to economic conditions. Plaintiffs’ attorneys continue to employ advanced tactics to sway juries, prompting defensive strategies such as the Mongoose Method to counteract these efforts. Social and economic inflation are also contributing to rising claim costs, further complicating the litigation landscape.