Ohio Considers Raising Caps on Non-Economic Damages Amid Nuclear Verdict Concerns

Ohio lawmakers are evaluating House Bill 447, which proposes increasing the cap on non-economic damages in court cases from $350,000 to $580,000, with adjustments tied to the Consumer Price Index. Non-economic damages include subjective claims such as pain and suffering, distinct from economic damages, which currently have no limit in Ohio. The Ohio Chamber of Commerce has expressed concerns that this bill could negatively impact the state's civil justice system and business environment by encouraging "nuclear verdicts"—large court awards dominated by non-economic damages. Currently, Ohio's cap is considered a factor in maintaining some of the most competitive insurance markets nationally, contributing to relatively affordable auto and home insurance premiums. A study by Marathon Strategies highlights a surge nationally in verdicts exceeding $10 million, dubbed "nuclear verdicts," and an increasing number of "thermonuclear verdicts" exceeding $100 million. These verdicts often involve cases where jurors lack specific guidelines for awarding non-economic damages, sometimes resulting in substantial liability awards for corporations. Ohio has experienced relatively few such large verdicts, attributed in part to its existing damage cap. Other states have taken varied approaches, with Colorado and New Hampshire increasing caps on non-economic damages while Wisconsin recently saw a veto of similar legislation. The bill under consideration in Ohio excludes medical-malpractice cases involving catastrophic injuries from the changes to damage caps. Given the legislative calendar, HB 447 is unlikely to be considered until 2026. This development reflects ongoing debates over balancing fair compensation for plaintiffs with maintaining stable insurance markets and reasonable civil litigation environments in the United States.