Marathon Strategies, a public relations firm, released a report on May 3, indicating that New Jersey recorded $1,480,387,446 in "nuclear" verdicts - verdicts exceeding $10 million - between 2009 and 2023.
According to the report, fourteen verdicts in New Jersey contributed to the total nuclear verdict of $1.48 billion. This figure ranked as the seventeenth largest in the country. Marathon attributes this surge in nuclear verdicts to factors such as trial attorney tactics including "anchoring" and the "reptile theory". The reptile theory is a strategy where attorneys attempt to appeal to jurors’ emotions. On the other hand, anchoring is a practice where lawyers suggest an excessively large award so that this figure becomes "anchored" in the jurors’ minds.
A report from the Insurance Journal states that nuclear verdicts have significantly impacted the insurance industry leading to multiple negative consequences. One major impact is the strain on availability and affordability of insurance coverage. As jury awards increase in size, particularly in cases involving trucking, pharmaceuticals, and product liability, insurers find it increasingly challenging to underwrite these risks without raising premiums or reducing coverage limits.
A report from Moneygeek indicates that car insurance costs in New Jersey vary from $1,492 for a forty-year-old driver to $1,677 for a 25-year-old driver. This makes insurance coverage in New Jersey more expensive compared to other states. Drivers with infractions pay even more: drivers aged between 22 and 29 with a ticket pay an average of $1,869 annually; while those within that age range with an at-fault accident on their record pay an average of $2,549.
NorthJersey.com reported that drivers residing in low-income or minority communities pay significantly more for car insurance in New Jersey. Drivers living in neighborhoods predominantly populated by black or Latino individuals pay nearly 50% more on average for car insurance coverage than drivers in predominantly white neighborhoods. Meanwhile, drivers in low-income neighborhoods pay 52% higher premiums on average compared to those in higher-income neighborhoods.
Marathon Strategies, founded by Phil Singer in 2008, comprises a team of data analysts and legal professionals specializing in research and communications. The company's website states that Singer established the company based on his two decades of experience in the field.
