Liability reform focused on the trucking industry is moving through the Texas statehouse.
Outlined as a priority by Lt. Gov. Dan Patrick, the legislation would clean up a 2021 law intended to overhaul injury liability statute for truck operations.
2021 law
Gov. Greg Abbott signed 2021 bill into law that was touted to “ensure a level playing field” in commercial liability cases. The law was designed to protect trucking companies from frivolous lawsuits in instances where the driver was not negligent.
Additionally, a court is required to dismiss a lawsuit against a truck operator if the injury or death of another person was caused while the operator was carrying out his or her duties “within the scope of employment.”
One part of the law established a bifurcated trial process – the term used to describe a trial split into two phases. The initial phase focuses solely on the incident under the state’s negligence standard.
During the second phase, broader evidence about the company’s past is allowed. Allowable evidence during this phase could include an employer’s failure to comply with an applicable local, state or federal regulation or standard.
Supporters have said the liability rule is intended to protect trucking companies from biased and unfair courtroom tactics.
One example provided is a plaintiff’s attorney submitting evidence at trial about a trucking company’s broader practices. The tactic is intended to convey to a jury that crashes are a systemic problem with a trucking operation.
At issue now is an amendment that was added to help the 2021 bill secure passage at the statehouse. The amendment incorporated exceptions to the admission rule that allowed plaintiff’s attorneys to introduce into the first phase of a bifurcated commercial vehicle collision trial evidence where trucking companies knowingly hired a negligent driver.
Sen. Brent Hagenbuch, R-Denton, was an author of the 2021 bill. He said that over time, it became clear the amendment actually ended up blocking the legislation’s framework from being used at trial.
As a result, the rule has not stemmed the tide of rising insurance costs; thus too many small businesses are being driven into bankruptcy.
Fixing the liability rule
Sen. Brian Birdwell, R-Granbury, and Rep. Jeff Leach, R-Plano, are behind bills to fix the 2021 rule.
“Rising insurance costs combined with exorbitant settlements disrupt the state’s ability to successfully meet the supply-demand needs of all Texans,” Birdwell stated. “Ultimately, higher costs from litigation and insurance rates are passed through to consumers of goods and services.”
SB39 and HB4688 would remove from statute the amended language that is blamed for the problem. The bills were recently considered in committee.
Supporters said the change would not prevent a claimant from pursuing certain claims, including an ordinary negligence claim against a defendant, such as negligent maintenance, repair or loading that is based on the defendant’s independent act of negligence.
Birdwell said the change would allow the admission rule to put plaintiffs and defendants on even footing to present their case. As a result, trial times would be reduced and court congestion would be lessened.
Opponents counter that the change would make it more difficult to hold trucking companies accountable for negligence.
Leach told committee members the intent of his liability bill.
“My goal remains for wrongdoers, and for companies who need to be held responsible, to be held responsible,” Leach said. “I also want to equally make sure that companies who have not done anything wrong, who have followed their own standards, and have not been negligent independently, that they would not be forced to pay for damages for which they are not responsible. That remains the goal of this legislation.”
The Senate Transportation Committee voted 6-3 to advance SB39. The House Judiciary and Civil Jurisprudence Committee voted 6-5 to advance HB4688.
Each bills awaits further consideration in its respective chamber. LL
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