According to a new report from consultancy Towers Perrin, "2008 Update on U.S. Tort Cost Trends," tort costs rose 2.1 percent in 2007, and is likely to rise this year and in coming years.
The firm has, which has been tracking tort costs for a decade and has data that goes back to 1950 on the topic, anticipates a rise in U.S. tort activity over the next several years, beginning this year, due to the subprime mortgage situation and the global economic downturn. Potential defendants include mortgage brokers, appraisers, investment banks and others.
The 2007 increase actually comes after a 5.6 percent decline in 2006. The 2007 increase, which translates into an increase of $5.1 billion, was primarily influenced by the frequency of car accidents, according to the Stamford, Conn.-based firm.
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