I have 3 points in Righteous Verdict, and it still doesn't work 100% of the time for me. Very strange.
I've seen Divine Storm damage on my damage breakdown, so it does hit from time to time - maybe it's a Z axis thing, so it works on flat ground, but it won't hit mobs that are even slightly elevated?
That would explain why it seems to work OK on dummies and in dungeons/raids, since most of the fighting terrain there is pretty flat. The same can't be said for the Broken Shore