Is a Claims Tsunami coming?
In 2008, the U.S. suffered a deep economic recession. Various publications from that time period predicted an increase in litigation as a by-product of a struggling economy. In-house counsel also reported efforts to ramp up staff in preparation for the anticipated litigation surge.
Now in 2020, we find ourselves in the midst of another substantial economic challenge. This economy appears to be different than in 2008. There are certain industries that are faring exceptionally well while many businesses may not survive the downturn.
The above image appeared on the front page of the Dallas Morning News in its November 15, 2020 edition. Staff Photographer Tom Fox captured this photo from a mega distribution event hosted by the North Texas Food Bank.
I used to have in office in one of those tall buildings in the background of this photo. I do not recall the same kind of uncertainty and need in 2008 that there is now.
Conventional wisdom suggests that claims and litigation increase during times of economic uncertainty. Claims and litigation also present real challenges to a company’s ability to survive.
This photo reminds us that we should do what we can to help our friends and neighbors in need. It also serves as Exhibit A as to what may be coming for those tasked with protecting their companies against claims and litigation. Regardless of what may be on the horizon, we must face the current challenges together.
To offer support to those in our community facing hardship and loss, Bocell Ridley, P.C. has made a donation to Minnie's Pantry in Plano, Texas whose mission is "to serve healthy meals, educational resources and red-carpet treatment to every person that we serve".