On May 14, 2024, the U.S. substantially increased tariff rates – in some cases by as much as fourfold – on imports of an array of strategic products from China. The tariff surge builds on high tariffs already in place under an international trade law remedy imposed in 2018. The decision to raise the tariff rates resulted from continuing trade friction with China over intellectual property violations, trade imbalances, and national security and human rights concerns. Businesses with an interest in the designated imports should pay close attention to these changes and their implications for U.S. commerce.

The U.S. Equal Employment Opportunity Commission (EEOC) is stepping up enforcement actions related to EEO-1 Reports. The EEOC has sued 15 employers across the nation for failing to submit workplace demographic data reports to the Commission in compliance with mandatory federal reporting requirements, alleging that these employers failed to submit EEO-1 Component 1 annual data reports for the years 2021 and 2022.

Texas is teetering on the edge of a final determination of whether the Admission Rule will apply in future cases in the state.  The Admission Rule, recognized in many states and at least five appellate districts in Texas, says that direct negligence claims such as negligent training, hiring, and supervision are merely legal routes other than respondeat superior to impute liability onto an employer when the employee acts outside the course and scope of their employment. Under the Admission Rule, when an employer admits that an employee was in the course and scope of employment at the time of an alleged incident, evidence of the employer’s hiring, training, or supervision practices becomes inadmissible as irrelevant and likely to prejudice the jury because vicarious liability has already been established.

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. 

Close on the heels of a favorable decision for transportation brokers out of the Eastern District of Texas, the Southern District of Texas has issued a similar ruling that is favorable to transportation brokers facing state law tort claims, holding that such claims are preempted by the Federal Aviation Administration Authorization Act (“FAAAA”), 40 U.S.C. § 14501(c)(1).

Phoenix Partner and Chair of Lewis Brisbois' Collegiate & Professional Sports Law Practice Gregg E. Clifton and New York Associate Christina Stylianou published an article in the April 2024 issue of the LexisNexis Sports Law Bulletin titled, "Rule 40 Sponsorships and Pay-For-Play.” The article discusses changes to the policies of and economics relating to the Olympic Games (Games), including compensation for athletes and the applicability of Rule 40 of the Olympic Charter, which governs the way that athletes and their sponsors may use their name and image in advertising.