U.S. civil suit costs declined by 5.5 percent in 2006, according to a consulting firm, which forecast they would rise more than 2 percent when 2007 figures come in and go even higher this year.

The findings came in the Tillinghast insurance consulting practice of Towers Perrin's “2007 Update on U.S. Tort Cost Trends.”

“In 2006, the modest decline in personal tort costs was combined with a significant drop on the commercial side,” said Russ Sutter, a Towers Perrin principal. “However, given several factors, including the potential fallout from the current subprime loan crisis, we anticipate a reversal in 2007. To put it bluntly, when people lose money, litigation tends to follow.”

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