A nearly half-billion-dollar nuclear verdict against Wabash National sent shockwaves through the trucking industry. One year later, the fallout has settled, and the trailer maker is paying only a fraction of that amount.
Truckers and legal experts alike were stunned that Wabash was found liable at all for a fatal crash in St. Louis. Minds were blown by the $450 million punitive damages nuclear verdict. That came on top of $12 million in compensatory damages.
Facts of the case left observers wondering how a jury could find Wabash responsible for the May 2019 crash. A car carrying two men struck a nearly stopped truck on Interstate 55. Both men died at the scene.
Investigators found the driver’s blood-alcohol level just above the legal limit. Furthermore, the two men were not wearing seat belts. Yet the jury never heard that evidence. Blood-alcohol and seat-belt details were barred from trial.
Meanwhile, the plaintiffs’ attorneys argued that trailer manufacturers, including Wabash, conspired to block federal rules requiring safer rear underride guards. Documents dating back to the 1960s – 20 years before Wabash even existed – were submitted to the court. Somehow, that evidence was allowed.
More details about the case can be found here.
After the nuclear verdict, Wabash immediately issued a press release rejecting the jury’s decision.
“While this was a tragic accident, we respectfully disagree with the jury’s verdict and firmly believe it is not supported by the facts or the law,” Wabash General Counsel and Chief Administrative Officer Kristin Glazner said in a statement. “No rear impact guard or trailer safety technology has ever existed that would have made a difference here.”
Wabash submitted a Securities and Exchange Commission filing explaining compensatory damages would be covered by insurance. However, the massive $450 million punitive damages “could materially and adversely affect the company’s financial conditions, results of operations and cash flows.”
In June, the St. Louis circuit court slashed punitive damages down to $108 million. The court found the original price tag “was grossly excessive and does not comport with Wabash’s constitutional rights.” Wabash still found the damages “abnormally high” and filed an appeal.
Earlier this month, the court approved a confidential settlement agreement. Details of the settlement remain sealed.
In a new SEC filing, Wabash indicated that it will pay a $30 million “contribution” as part of the settlement – which amounts to approximately 6% of original nuclear verdict. The rest of the undisclosed settlement will be covered by insurance.
Wabash said that the settlement is not an admission of liability or wrongdoing.
“The evidence in the (case) was undisputed that the trailer fully complied with all applicable regulations,” Wabash stated in the SEC filing. “Despite precedent to the contrary, the jury was prevented from hearing critical evidence in the case, including that the driver’s blood-alcohol level was over the legal limit at the time of the accident and the fact that neither the driver nor the passenger was wearing a seat belt.” LL
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