A Different Lens: A statistical look at trends in litigation

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Posts here on The Witness Box usually touch on statistics in the form of statistical evidence and statistical expert analysis and testimony. Today we are changing perspective, looking at the relationship between statistics and litigation in a different context.  Did you know that a whopping eighty percent of the world’s lawyers live in the U.S.?

Examining litigation through the eyes of statistics

The Bureau of Justice Statistics conducted a national sample of state trial courts and 26,948 civil trials The BJS reports that the number of civil trials declined significantly, over 50 percent, from 1992 to 2005 in the most populous counties in the US. Tort cases during that period decreased 40 percent, and real property and contract cases had the greatest declines, 77 percent and 63 percent, respectively.

When the analysis was performed, plaintiffs won in 56 percent of general civil trials in state courts, with a median award of $28,000, and 4 percent of plaintiffs winning over $1 million.

Let’s turn our attention to personal injury litigation. Half are related to automobile accidents, 15 percent are based on claims of medical malpractice, and five percent are the results of products liability allegations. How many personal injury lawsuits end in pre-trial settlement?  Ninety-five percent, or 19 out of 20 lawsuits.

In terms of damages, needing to prepare for the strong possibility of settlement means communicating with an economic expert early is often necessity. One study of published court opinions from 2000 to 2011 notes there were 11,262 cases that reference Daubert or Kumho Tire to expert witness testimony. Although the percentage of successful challenges to expert testimony has remained fairly consistent over that decade, the number of challenges increased from 253 in 2000, to 879 and 778 in 2010 and 2011, respectively.

If we turn our statistical view to wage and hour suits, we learn that 78 percent of agency initiated investigations in 2014 found violations. The United States Department of Labor Wage and Hour Division (WHD) statistics page reports that from 2009 to 2014 there was a 23 percent increase in agency initiated investigations, and a 20 percent increase in employers found in violation.

In 2014, WHD collected an average of $659,000 every day in back wages, equaling on average around $890 per employee. The statistics are presented in a way that translates the information into concepts that are easy to comprehend and relate to, for example, showing that $890 can buy nearly five weeks of groceries, three months of utility bills , or five weeks of childcare.

Economic Expert Tip: Keep an eye out for examples like the WHD statistics page that illustrate information in a way that someone unfamiliar with statistics or economics could easily understand. This will help you have a better sense of the sort of communication ability you wish to find in a statistical or economic expert.

 

J.R. Randall

J.R. Randall is an economist who resides in the Bay Area. He focuses his interest on range of economic topics. He has interest in deep sea fishing and art.