Sympathetic juries continue to hand down massive judgments against freight carriers that will result in increased consumer goods costs and exacerbate inflation. Although the injuries victims of highway traffic collisions are heart-wrenching, excessive “nuclear verdicts” could be both misplaced and counterproductive.
The American Transportation Research Institute reportedly published a research paper called “The Impact of Nuclear Verdicts on the Trucking Industry,” which indicates verdicts have surged from an average of $2.3 million in 2010 to $23 million in 2018. That amounts to an increase of 1,000 percent, on average.
While anyone injured due to another person’s failure to operate a motor vehicle safely deserves full fair compensation, does $411 million seem balanced. In October 2020, a Florida man operating a motorcycle was paralyzed during a 45-vehicle pileup reportedly due to “weather conditions coupled with speeding by a Top Auto commercial vehicle driver.” Duane Washington was driving his motorcycle and collided with a parked Top Auto truck on the shoulder while trying to avert the stopped automobiles. According to reports, the truck did not have its lights on and that formed the basis of the $411 million verdict.
“In most states, there’s a disconnect between your level of negligence and your level of liability,” American Transportation Research Institute vice president Dan Murray reportedly said. “There are states where you can be identified as 10 percent or 15 percent negligent and still be vulnerable for 100 percent of the financial liabilities.”
Few would disagree that the $411 million monetary verdict is excessive. But the looming question is where does the money come from? More and more juries appear to be punishing truckers because they see images of wrecks plastered on local news stations and hear lawmakers targeting CDL professionals. Truth be told, there are fewer heavy-duty truck fatalities in recent years despite more freight being hauled. But the issue the rash of nuclear verdicts raises that officials are not talking about is insurance coverage.
“If someone wins $20 million from the jury, my insurance companies only pay the first $5 (million). I would have to pay the next $15 million. We couldn’t afford that. We’d have to shut our doors.” Combined Transport president Mike Card reportedly said. “We’re struggling to get excess insurance. Getting $5 million or $10 million of insurance has been so expensive that we can’t even afford to buy the extra insurance that we’d like to have.”
Freight carriers have can either close shop, secure extremely expensive policies that provide hundreds of millions in liability coverage, or pay out-of-pocket if they can afford it. But make no mistake about it, every penny will be passed along to consumers.
Sources: ccjdigital.com, freightwaves.com
Mr. Washington’s crash is another example of motorbike crashes, where speed and distraction may be a factor. When you are driving any vehicle, can you stop in short notice of an incident happening ahead of you? Attorneys are just waiting to lay the blame on the one with more insurance.
Wrong, waiting to blame the trucker. We are guilty until proven innocent!
This is what is wrong with society today. Common sense is long gone. Most of us are professional and make every effort to be safe out there. More often than not a 4 wheeler causes the wreck and we get the blame. And everyone from the juries to the state sees truckers as easy money to pray upon.
Problem with all this is that most of the truck wrecks are caused by the general public (4 wheelers as well as 2), but yet we cannot sue them. If we try, it then gets turned so it looks like our fault. What we need to do is shutdown for a full week and give this country something to think about. Without us this country stops. No food, no fuel, nothing. Then maybe these sue happy lawyers, judges and juries will think twice about raping us and our companies.
Not just juries, Don M. I witnessed a wreck where someone pulled out in front of a transfer with almost no room. The transfer driver made an evasive maneuver and lost the trailer. I explained what I saw to the CHP officer but she said, “The truck ALWAYS gets the ticket.”
Why worry about it? I’m sick and tired of everything being designed to keep us in fear all day. We can’t take a crap without someone trying to scare the shit out of us. Just drive as safe as you can and try to leave yourself an out in case of other idiots. It’s all you can do.
They probably get a Philadelphia judge and jury. Those clowns will give away the farm when it comes to awards.
That’s why my truck is governed at 55 mph, very few accident
The best policy is to not have an accident.