US COVID Litigation on the Rise

Care homes across the United States are facing a rapid increase in the levels of litigation as a result of the COVID-19 pandemic.

Liability risk analytics software company Praedicat, has released the initial results from its newly launched litigation tracker platform, which monitors US courts for casualty-relevant COVID-19 litigation complaint by complaint.

With more than 200 complaints already filed in US courts alleging corporate defendants are responsible for introducing and spreading SARS-CoV-2 in the United States, Praedicat’s litigation tracker enables re/insurers to stay abreast of and respond to this fast-moving litigation event.

The research found as of 13 July, 217 complaints have been filed with 55% involving allegations of personal injury or threat of personal injury among cruise ship passengers and nursing home residents and employees. The tracker allows users to identify industries most vulnerable to COVID-19 litigation, with significant clusters of complaints in hospitals, meat packing facilities, restaurants, and warehouses. The tracker is also capturing shareholder actions alleging corporate officers breached their fiduciary duty during the pandemic. The litigation tracker reports on casualty-relevant litigation related to COVID-19 brought in all 50 states, the District of Columbia, and U.S. federal courts. Coverage disputes and actions related to prisons and detention facilities are not included.

David Loughran, Head of Product and Chief Economist at Praedicat said: “Our litigation tracking service has provided the first picture of the scale of the emerging legal action related to the fast-changing pandemic. Already, we are seeing that nursing home complaints are accelerating while cruise line complaints are leveling off. The initial feedback we have had from clients is that the data has been extremely useful to help them manage their potential exposure to novel causes of action.”