Low Income Could Mean High Awards

One of the major hot-button issues during this year’s presidential race is the perceived vast income inequality in the U.S.  Bernie Sanders’ platform is in large part based on his socialist ideals, while Democrats and Republicans debate whether there should be a flat tax versus a higher tax for the wealthy.  This debate splits voters right down the middle, and we’ve noticed how differences between those at the top income bracket and those at the bottom can directly shape opinions in the courtroom.

We’ve worked with more than 7,000 participants during our 12 years of experience conducting focus groups and found jurors whose annual household income is less than $25,000 are 1.3 times more likely to find in favor of the plaintiff than those whose annual household income is $75,000 or more.  We’ve also observed these plaintiff-oriented jurors are more willing to spike damages, including some outliers who award incomprehensible amounts.  On more than one occasion, we’ve heard jurors recommend awarding plaintiffs an eye-popping $1 billion. 

Although a small number of jurors treat awards like “monopoly money,” the majority of low-income jurors’ decisions to award damages are rooted in their plaintiff-friendly ideals.  For instance, our data shows those whose annual household income is less than $25,000 are more likely to believe corporations should be punished more harshly than individuals.  Low-income individuals are also more willing to take lawyer’s fees into account when deciding how much to award and are more likely to award extra money to “take care of” an injured plaintiff “just in case.”

These facts can add up to troublesome awards from a defense perspective, but the perception of “fairness” can work in your favor.  Low-income jurors are also more likely to decide a case based on what’s fair rather than the letter of the law.  Therefore, it is important to ensure you counter the plaintiff’s award in terms of fairness.  Clearly explain the reasons behind your damages number so jurors have an understanding that the defense isn’t “lowballing” – it’s suggesting fair and reasonable compensation based on facts about life expectancy and previous medical costs.

Although replicating the sympathy factor present at trial during focus groups can be tough and there’s no way to definitively predict how anyone – including low-income jurors – will respond in the courtroom, examining the reasoning behind jurors’ awards can help.  Please contact Senior Vice President Claire Luna at 714.754.1010 or cluna@juryimpact.net if you’d like assistance learning what factors jurors in your jurisdiction believe are important.

We’re excited to announce Jury Impact has moved offices.  If you would like to get in touch with us by mail, please send all correspondence to our new location at 19800 MacArthur Blvd., Suite 700, Irvine, CA 92612.