Last week, the LZBlog took an in-depth look at tort reform, or lawsuit abuse reform, as it pertains to the trucking industry. From nuclear verdicts to noneconomic damages and everything between, it is clear that the United States justice system is a complicated beast, and the trucking industry has been flailing in the wake of an increase in jury and judge awards after a lawsuit. With millions of dollars being paid out to accident victims and their families and the insurance companies, trucking companies are crying out for their own justice. If you missed last week’s blog article, (November 6, 2024), click on the hyperlink and catch up on the basics! This week, we are examining the different steps that states have taken to institute civil case reforms in their own court systems.
“I went from Phoenix, Arizona, all the way to Tacoma…”
Several states have taken some initiative to put in place laws and regulations to control the seemingly endless string of litigations being brought to courts after an accident involving a semi-truck. Nearly everyone has seen the billboards and commercials for so-called “ambulance chasing” law practices that promise justice for those involved in an accident. Who is fighting on the side of the truck drivers, though?
Led by individual state trucking associations, there has been an upward, albeit slow, trend of laws being lobbied to state governments to protect the transportation industry being introduced by legislative supporters. The president and CEO of the Florida Trucking Association stated that “Tort reform is a state-by-state issue, but all tend to have the same goals in common, such as eliminating spurious lawsuits and limiting so-called nuclear verdicts…” Each state legislature must take the appropriate steps to create and implement laws concerning state courts, and here are some of the few that have been taken so far.
- West Virginia: Since 2021, West Virginia has enacted two laws to curb third-party financing of lawsuits against trucking companies. SB 439 (passed in 2021) and SB 850 (passed just this year) both took steps to permit trucking companies to discover whether or not a plaintiff used a third party to pay for the lawyers they are using. In addition to that, in 2024, West Virginia’s legislature also passed SB 583. This legislation puts a limit on how much money in noneconomic damages can be recovered from a motor carrier. At five million dollars, that is still an extreme amount of money for a small company, but it is considered a momentous leap in the right direction by the transportation industry.
- Florida: According to the president and CEO of the Florida Trucking Association, Dr. Alix Miller, “Florida has long been considered ground zero for…” litigation against trucking. In order to combat that, they supported and lobbied for HB837 to be passed, and the bill was signed into law by their governor in 2023. Among the many reforms this bill covers, there is now a shortened statute of limitations under which to bring lawsuits against trucking companies, a standardization of the process to prove medical expenses from the plaintiff, and protection for motor carriers against being forced into a settlement, even if the plaintiff is found to be at fault.
- Wisconsin: Not all attempts to institute change have been successful. In Wisconsin earlier this year, the state legislature passed SB 613; this law would have capped noneconomic damages at one million dollars. This bill, however, was vetoed at the desk of Governor Evers. Considered a detrimental blow by the American Trucking Association, they called it “a missed opportunity to ensure that justice and fairness determine accident litigation outcomes in Wisconsin, not profits…” Adding that over 180,000 jobs in the state were tied to the trucking industry, the ATA is concerned that vetoing this bill will not be good for those employed by the transportation industry.
Conclusion
Lawsuit abuse reform is an important issue in the trucking and transportation industries, and the states above are not the only ones making progressive strides. The American Transportation Research Institute stated that “Lawsuit abuse reform ranks number three on the 2024 list of top industry concerns…” The Texas Trucking Association has already listed tort reform as one of their priorities in 2025 as well. While only time will tell what comes next for these efforts, the LZBlog will be here to keep you informed!
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Meaghan Goldberg covers recruitment and digital marketing for Lionzone. A Patterson, GA native, after graduating from both Valdosta State University and Middle Tennessee State University, Meaghan joined Lionzone in 2018 as a digital recruitment strategist before becoming the social media manager.
Resources:
https://www.trucking.org/lawsuitabuse
https://cdllife.com/2024/lawsuit-abuse-reform-tops-list-of-trucking-industry-concerns/
