The term “nuclear verdict,” which is generally defined as a jury award exceeding $10 million, is no longer a rare phenomenon reserved for the most plaintiff-friendly jurisdictions. In 2024, the number of nuclear verdicts nationwide climbed to 135, representing a 52% increase over 2023.[1] Those verdicts were returned in 34 states and 77 different courtrooms. While North Carolina has not historically ranked among the states most associated with nuclear verdicts, such as Texas, California, Pennsylvania, and New York, national data suggests that no state is entirely insulated. The $101 million verdict returned in Henderson County last week serves as a reminder that the conditions fueling nuclear jury awards can emerge anywhere.

The increase in number of nuclear verdicts is no accident. Several factors, both inside and outside the courtroom, have contributed to the trend. In the courtroom, plaintiffs’ attorneys increasingly employ tactics such as “reptile theory,” which appeals to jurors’ emotions, and “anchoring,” a strategy that places extraordinarily large damage figures before jurors early in the proceedings. Outside the courtroom, aggressive attorney advertising touting record-breaking verdicts has attempted to reshape public (i.e. potential jurors’) perception of what constitutes reasonable compensation. At the same time, the growth of third-party litigation investment has enabled this type of attorney advertising, provided additional resources for prolonged litigation, and increased award demands, which negatively impact the parties’ ability to reach a reasonable settlement.

Should North Carolina businesses be concerned? The short, lawyerly answer is, “maybe.” A perhaps more important question may be how long the state can maintain its historically balanced legal climate. Despite the couple of recent verdicts and publicly reported settlement amounts coming out of Henderson and Mecklenburg Counties which have attracted attention, these cases seem to be indicative of the trial tactics outlined above and unique set of facts, rather than a state-wide trend. Nevertheless, some nearby southern states have taken notice of the risks posed by nuclear verdicts coming out of their courts and responded with tort reform measures aimed at improving predictability and reducing litigation costs. Florida, for example, enacted comprehensive tort reforms in early 2023, and subsequently reduced its exposure by falling from the second-ranked state for nuclear verdicts to tenth by 2024.[2]

As North Carolina policymakers evaluate ways to preserve the state’s reputation as a top destination for business, tort reforms aimed at promoting fairness, transparency, and predictability play an important role. Consistent with that objective, the Chamber’s 2026 Legislative Agenda reflects our goal to advance tort and civil liability reform efforts designed to maintain North Carolina’s strong legal business climate and reduce any risk that the state becomes a hot spot for nuclear verdicts.

 

[1] See https://marathonstrategies.com/report/corporate-verdicts-go-thermonuclear-2025-edition/ and https://www.insurancejournal.com/news/national/2025/05/22/824792.htm.

[2] See https://riskandinsurance.com/nuclear-verdicts-skyrocket-corporate-lawsuit-awards-surge-116-to-31-3-billion-in-2024/.