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Nuclear Verdicts in Construction Litigation: Defense Strategies to Mitigate Risk, Notable Verdicts and Lessons Learned

Recording of a 90-minute CLE video webinar with Q&A

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This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, July 8, 2025

Recorded event now available

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This CLE webinar will examine the risk of nuclear verdicts in the construction industry, address challenges for defense attorneys, and discuss lessons that can be learned from notable verdicts against construction companies. The expert panel will offer defense strategies to mitigate risk of nuclear verdicts—from developing the defense theory of the case, to voir dire and motion practice, to the selection and use of expert witnesses in trial.

Description

Nuclear verdicts, awards exceeding $10 million, are now commonplace and heavily impact the construction industry nationwide. With claims arising from workplace accidents, design errors and omissions, and construction defect claims, significant jury awards can result.

Examples of nuclear verdicts in the construction industry include: (1) a jury verdict of $74 million resulting from an improperly paved road in Kentucky; (2) a New York construction worker's fall resulting in a $102 million verdict; and (3) an $860 million verdict resulting from the death of a Texas woman killed by a crane crash.

There are a number of reasons for the increase in nuclear verdicts including the legal strategy known as the reptile theory in which plaintiffs' attorneys tap into the primal instincts of jurors by appealing to fears that construction companies seek profits over safety. Social inflation also plays a significant role when social pressures such as financial hardship and unemployment cause jurors to lash out and punish companies in response to their own fears.

Counsel for construction clients should understand the risk of nuclear verdicts and strategies to mitigate risk through the litigation process beginning with motion practice and voir dire and continuing through the trial.

Listen as our expert panel of litigators discusses the rise of nuclear verdicts in the construction industry and challenges facing defense counsel. The panel will also examine defense strategies and offer best practices for mitigating the risk of such verdicts.

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Outline

  1. The rise in nuclear verdicts
    1. Introduction
    2. What is a nuclear verdict?
    3. Historical examples
    4. Notable nuclear verdicts against construction companies
    5. Verdicts trending higher and settlement value inflation
  2. Types of construction claims prone to nuclear verdicts
    1. Workplace injuries
    2. Catastrophic property damages
    3. Design and construction defect cases, including building collapse or failure
    4. Consequential damages due to construction delays
    5. Why the construction industry is vulnerable to nuclear verdicts
    6. Impacts on the construction industry
  3. Legal limitations on nuclear verdicts
    1. Damage limitation statutes, affidavits of merit, frivolous litigation statutes, and common law abusive litigation claims
    2. Prerequisites to recovery of punitive damages
    3. Constitutional limits
    4. Tort reform
  4. Defending against nuclear verdicts
    1. Challenges for defense attorneys: reptile theory, distrust of corporations, social inflation, litigation funding
    2. Pre-trial strategies: defense theories, pleadings, dispositive motions, motions to exclude evidence, stipulations and partial settlements, mediations, high and low agreements, mock trials, and voir dire
  5. Best practices to mitigate risk of nuclear verdicts
    1. Planning and inspections
    2. Labor and improvement of hiring practices, training and safety
    3. Recordkeeping
    4. Crafting clear and enforceable contracts
    5. Risk transfer and insurance
    6. Avoiding juries

Benefits

The panel will review these and other key considerations:

  • What has been the impact of nuclear verdicts on the construction industry? What are challenges for defense counsel?
  • What are notable nuclear verdicts against companies in the construction industry and what lessons can be learned by counsel and their clients?
  • What defense strategies may be utilized to help mitigate the risk of a nuclear verdict?

Faculty

Cahalan, Scott
Scott D. Cahalan

Partner
Smith Gambrell & Russell

Mr. Cahalan has substantial experience representing owners, contractors, subcontractors, engineers, architects,...  |  Read More

Cinnamond, Teresa
Teresa M. Cinnamond

Partner
Kennedys Law

Ms. Cinnamond has over 30 years of experience and is highly skilled at successfully defending property owners, property...  |  Read More

Flam, Gilda
Gilda Flam

Partner
Kennedys Law

Ms. Flam is a Partner in the Miami office where she concentrates her practice on defending premises liability and...  |  Read More

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