A study by the American Transportation Research Institute (ATRI) in 2020 addressed the impact of the notable increase in nuclear verdicts on the trucking industry. In 2021, the ATRI published a counterpart to this study, which addressed the impact of small verdicts and settlements on the trucking industry. Although the smaller payouts have little effect on large trucking companies and insurance carriers, there is no doubt that these smaller settlements are increasing in both frequency and severity.  While these reports set forth several specific conclusions related to trends in trucking litigation, namely an increase in claims and an increase in payouts, what has become clear over the past several years is that trucking lawsuit abuse reform is of growing interest in the transportation field.

According to the U.S. Chamber of Commerce Institute for Legal Reform, nearly one in four auto accident trials that result in a verdict of $10 million or more involve a trucking company. Faced with the prospect of such high payouts, the plaintiff’s bar is increasingly searching for deeper pockets in motor carrier personal injury cases by targeting third parties. Freight brokers are most often dragged into such cases under theories of negligent hiring and vicarious liability, though defending against such fact-intensive claims can be costly and difficult. Fortunately, brokers can limit exposure to vicarious liability through clear delineations of responsibilities in their contracts with motor carriers and strict adherence to the contracts’ terms. Here’s an excellent example.

The Federal Motor Carrier Safety Administration (FMCSA) has a clear goal in mind with updates and proposed changes to its rules and regulations for the road introduced in 2023 – safety. The updates implemented last year will likely lead to a decrease in accidents. However, they will also lead to an increase in costs and operations for fleet owners. 

The Federal Motor Carrier Safety Administration has made a number of regulatory adjustments applicable to trucking companies and operators. 

(Thefts Occurring at the Same Location On the Same Evening Constituted One Occurrence Under Property Policy)

(Insurer Improperly Cancelled Automobile Policy By Failing To Send Notice of Cancellation To Individual Specifically Identified On Policy As An Insured)

(Insured Entitled to Video Record the Insurer’s Participants In an Examination Under Oath Proceeding)

(Insurer Entitled to Arbitrate Underinsured Motorist Claim, Notwithstanding Insured’s Lawsuit for Bad Faith)