Are civil trials vanishing? Judge Beth M. Andrus American Judges Association October 2015
King County Superior Court Statistical Analysis (1992 – 2014) Civil trials = decreased in real numbers Tort trials = alive and well Commercial trials = endangered species
King County Superior Court King County, Washington Population 1992 Washington State 5,091,100 King County 1,572,000 2014 Washington State 6,968,200 King County 2,017,250 (22% population increase in 22 years)
King County Superior Court Statistics Total new civil case filings ,108 ,418 Total civil case resolutions ,814 ,551
King County Superior Court 11 Major Civil Case Types Collection Commercial Medical Malpractice Other Malpractice Miscellaneous Personal Injury Property Damage Quiet Title Tort, Motor Vehicle Tort, Other Wrongful Death
King County Superior Court 11 Major Civil Case Types Total Civil Case Filings ,465 ,287 Total Case Resolutions ,851 ,038
11 Major Civil Case Type Filings ( )
Commercial Case Filings ( )
Commercial Cases Defined Breach of Contract: complaint involving money dispute where a breach of contract is involved. Commercial Contract: complaint involving money dispute where a contract is involved. Commercial Non-Contract: complaint involving money dispute where no contract is involved.
11 Major Civil Case Types Trial Rates (1992 – 2014)
Medical Malpractice Trials (1992–2014)
Motor Vehicle Tort Trials
Personal Injury Trials (1992 – 2014)
Commercial Trials ( ) 1992: 1.8% tried 2014: 0.7% tried
Commercial Summary Judgment Rates % % % % % % % % % % % % % % % % % % % % % % % The reduction in commercial trial rates is not attributable to increased use of summary judgments. Summary judgment rates have remained fairly constant over time.
Commercial Case Settlement Rates % % % % % % % % % % % % % % % % % % % % % % % The reduction in commercial trial rates is not the result of an increase in pre-trial settlements. Settlement rates have decreased, not increased over time.
Why the change in commercial case filings? Are businesses less litigious now or are they taking their lawsuits elsewhere? Federal court? Arbitration?
W.D. WASHINGTON CONTRACT CASE FILINGS
Number of business transactions Gross domestic product ( )
What role is arbitration playing?
Fortune 1000 Company Views on Arbitration Question Used arbitration in last 3 years80%83% Used arbitration in commercial/contract disputes85%62.3% Provides more satisfactory process60.5%38.2% Provides more satisfactory results34.8%26.0% Provides more durable resolution28.3%18.6% Likely or very likely to use arbitration in future71.0%50.2% Unlikely or very unlikely to use arbitration in future29%49.9%
Reasons Companies Don’t Use Arbitration Reason Lack of appeal54.3%51.6% Compromised outcomes49.7%47.0% Unwillingness of opposing party62.8%44.9% Arbitrators not following law48.6%44.1% Lack of confidence in neutrals48.3%34.2% Senior management refusing to use35.0%24.6% Too costly14.8%22.9%
Repeat litigants prefer arbitration over first time litigants. A litigant’s subjective estimate of its ability to win at the start of a dispute may shape the decision on where to file. Personal injury litigants prefer jury trial more than other method of resolving a claim and more than any other litigant group. If litigants had pre-existing relationship, they preferred mediation over any other adversarial procedure.
Are civil trials really vanishing? Commercial trials may soon vanish from state courts. Not because litigants prefer federal court or arbitration. Not because we are dismissing more cases on summary judgment. Not because more lawsuits resolve through settlement than before. Fewer commercial lawsuits are being filed in any court or arbitration forum. Businesses are finding informal methods for resolving their disputes – perhaps through pre-litigation mediation or simply by negotiation. Tort trials—personal injury, motor vehicle torts, medical malpractice—are alive and well.
Are civil trials vanishing? Judge Beth M. Andrus American Judges Association October 2015