Key Points

1. 1) Social inflation creates ever-higher median court judgments and settlements.
2. 2) A plaintiff bar benefiting from large awards propagates and amplifies the phenomenon.
3. 3) Left unchecked, ballooning awards send inappropriate price signals, feeding a self-perpetuating trend.
4. 4) Courts, legislatures and the defense bar need to work actively, strategically and cooperatively to create awareness of the dangers of out-of-control social inflation and introduce court and public policy measures to stem its growth.