Premises liability actions are often automatically associated with incidents involving relatively minor injuries and low levels of liability. Claims stemming from falls in stores and other locations open to the public are sometimes settled for nuisance value or little more. However, a review conducted by a reinsurance company shows that increased premises liability exposure is increasingly becoming a concern for many businesses in the United States. 

Munich Re’s report notes that so-called “nuclear verdicts,” where a jury awards the plaintiff(s) at least $10 million, are becoming more common in premises liability cases. Approximately 14 percent of eight-figure verdicts now come from these types of claims. Two notable recent cases demonstrate how allegations involving security failures are particularly risky for defendants and insurers. 

A Georgia Supreme Court decision upheld an award of nearly $43 million in a case where a man was robbed and shot in the parking lot of a CVS pharmacy. Located in a high-crime section of Atlanta, the drugstore was already the site of multiple serious crimes in the two years since CVS stopped providing security to protect customers and employees. Workers testified that they felt unsafe in the area, giving support to plaintiff’s argument that the pharmaceutical giant knew of the hazard and failed to act reasonably to prevent what occurred. In fact, an even larger award has handed down in a similar case involving a nearby Kroger supermarket. 

Retailers are not the only ones who face the prospect of a massive exposure from a premises liability lawsuit. In 2024, a Florida property owner, manager and security firm agreed to a $21 million settlement after a tenant was murdered in his apartment complex parking lot in a case where where the victim’s family alleged a knowing failure to address security concerns.

Just as supermarkets and restaurants must always be aware of spills and other slip-and-fall hazards, parties with responsibility for public areas should remain cognizant of crime data, prior incidents and internal warnings. Jurors have shown a willingness to treat defendants harshly in matters that can fall into a “profits over safety” narrative. Missing video, poor lighting or incomplete incident logs can be framed as indifference or spoliation. 

Even with West Virginia’s cap on punitive damages, exposure in a serious premises liability case can easily run into the millions. If you’re facing an action stemming a from a purported security failure, a slip-and-fall or some other form of alleged negligence, it is critical to hire an attorney with substantial experience successfully defending clients against these claims. 

Pullin, Fowler, Flanagan, Brown & Poe handles premises liability defense matters across West Virginia, Kentucky and Ohio. Please call 304-344-0100 or contact us online to discuss your specific legal challenge with a knowledgeable attorney.