AskWaves looks at how states legislate to shield carriers from liability when accidents occur. Lawmakers in Iowa and Florida are considering bills to limit lawsuits and rein in jury awards. Iowa’s House Study Bill 114 caps noneconomic damages at $1 million unless the driver is under the influence. Rep. Bill Gustoff said: “Iowa ranks as one of the top states to do business, and we’re just trying to keep it that way and avoid some of the nuclear verdicts we’ve seen in many other states.” David Scott (lobbyist for the Iowa Motor Truck Association) said the bill’s goal was to clarify to commercial vehicle owners their level of liability in accidents. He said it provides “a degree of predictability…to all 804,000 commercial vehicles in Iowa.”
Nuclear verdicts have skyrocketed since 2011.
In Aug. 2021, a Florida jury awarded a record $1 billion verdict in a case involving two trucking companies for the death of 18-year-old Connor Dzion, with $100 million for pain and suffering and $900 million in punitive damages. Later that same year, a Texas jury awarded $730 million for the death of 73-year-old Toni Combest in 2016 due to a collision with an oversized cargo truck. According to the American Transportation Research Institute (ATRI), the trucking industry has seen a continuous escalation of “nuclear verdicts” (defined as those exceeding $10 million) since 2011. ATRI noted in its 2020 report “Understanding the Impact of Nuclear Verdicts on the Trucking Industry” that personal injury suits have risen since the late 20th century, creating an environment where large verdicts have become common.
Texas enacts law against trucking litigation while Florida mulls tort reforms.
In Texas, a law increasing the standard for finding a trucking company liable for an accident was enacted in September 2021. Its advocates said it would prevent excessive lawsuits, while opponents said it could make roads more dangerous and deter victims from justice. Florida is also considering reforms to limit nuclear verdicts; Gov. DeSantis announced a tort reform bill outline to decrease “frivolous lawsuits and predatory practices of trial attorneys.” Opponents of the bill going through the Iowa Legislature said it takes away accountability from trucking companies and diminishes jury decisions. It passed 2-1, with a cap on damages for trucking companies specifically.
Sources:
Leave a Comment