
Progress is being made at statehouses around the country to address tort reform that could affect truck drivers.
The Owner-Operator Independent Drivers Association has long advocated for reform to civil liability rules to reduce lawsuit abuse around the nation. OOIDA has said plaintiff’s lawyers constantly grow more aggressive with theories and arguments, trying to reach into the pockets of truck drivers who often have little-to-no fault for an unfortunate incident.
Arkansas
A new Arkansas law is touted to restore fairness and transparency in the state’s judicial system by limiting “phantom damages.”
At issue was a rule allowing a plaintiff to seek the full amount charged by a medical provider. There was no adjustment if the insurance company negotiated a lesser amount to be paid.
Sen. Jon Eubanks, R-Paris, described the new law as outlining the recovery of damages for past medical expenses incurred by an injured party. Specifically, plaintiffs are allowed to recover only what insurance companies have paid for medical treatment, not the amount charged by hospitals and physicians.
“(The new rule) specifies that only costs actually paid by or on behalf of the plaintiff, or those that remain unpaid and for which the plaintiff or third party is legally responsible, can be included in the recovery,” Eubanks said while speaking on the House floor.
Advocates have noted that medical providers regularly reduce bills for care. When a plaintiff recovers the amount on the initial bill, rather than the amount actually paid, it inflates recoveries and increases costs for truck operations and other businesses of all sizes.
Supporters have added that the new law does not impact the recovery of future medical costs or noneconomic damages such as pain and suffering.
Maryland
In Maryland, legislation would eliminate limits on noneconomic damages in personal injury cases.
The state limits noneconomic damages to $950,000. The amount is increased annually by $15,000. A higher amount is available in wrongful death actions involving two or more beneficiaries.
Currently, a jury is not informed of limitations on damages. If a jury awards an amount for noneconomic damages that exceeds the applicable limitation, the court must reduce the amount to conform to the limitation.
HB113/SB584 would repeal the caps on noneconomic damages.
At a recent House Judiciary Committee hearing, opponents said limits are good public policy. They cited the subjective and unquantifiable nature of pain and suffering.
The American Tort Reform Association said that “placing reasonable limits on these types of damages balances the need for injury recovery while avoiding excessive awards.”
Bill supporters said it is time to give the determination of monetary awards back to the judiciary system.
Nebraska
Multiple Nebraska bills cover civil action that could involve truck drivers.
The Judiciary Committee recently met to discuss each of the bills. The first bill, LB205, would cap at $1 million noneconomic damages for personal injury actions involving a commercial vehicle that requires a commercial driver’s license to operate.
Stricter guidelines would also be set for the admissibility of medical expenses in personal injury or wrongful death cases. Recoverable damages would be limited to amounts actually paid rather than billed.
Additionally, claimants would be required to disclose third-party medical payment agreements and insurance coverage details.
A second bill, LB132, would allow evidence that a person was not wearing a seat belt to be admissible in any civil proceeding to determine liability and mitigation.
Since 1985, state law has prohibited seat belt evidence in affected cases.
Sen. Kathleen Kauth of Omaha said the rule has outlived its usefulness. She cited stricter seat belt rules over the past four decades.
Nebraska Trucking Association President Kent Grisham spoke in favor of the bill.
“Essentially, it is not fair for the owner of a motor vehicle, whether a commercial big rig or a personal minivan, to be held fully liable for injuries to another driver when that other driver was negligent themselves when it comes to using a seat belt,” Grisham said. “Yet, in Nebraska, that unfairness is exactly what we have written into statute.”
He added that the trucking industry is only asking for fairness on the issue.
Another bill, LB199, would reduce the statute of limitations for personal injury actions from four years to two years.
The state trucking association said the change would ensure that disputes brought to court are resolved promptly.
Additionally, the bill would require disclosure of any third-party litigation financing.
The term is used to describe instances when third-party litigation financing firms pay for lawsuits they feel have a good chance of being won. In many cases, the practice makes reaching a reasonable agreement more difficult due to the anonymous third-party’s financial stake in the case.
Funding companies back many types of commercial and consumer claims, including truck-related incidents.
The bill would require a consumer or the consumer’s attorney to disclose and provide a copy of any contract for civil litigation funding to all parties involved in litigation, including any court, agency or tribunal in which the legal claim is pending.
One more bill, LB79, states if an employer admits that during an incident involving a commercial vehicle, the person in question was an employee or independent contractor and was acting within the scope of employment, the employer’s liability would be decided solely on the legal doctrine of respondeat superior.
Respondeat superior is a legal doctrine that holds an employer responsible for the actions of its employees if those actions are committed within the scope of employment, according to Cornell Law School.
Oklahoma
Two Oklahoma Senate bills address noneconomic damages.
The Senate Judiciary Committee voted to advance a bill that would reinstate the state’s cap on noneconomic damages the Oklahoma Supreme Court later ruled to be unconstitutional.
Statute caps compensation for pain and suffering at $350,000 for many lawsuits.
Bill sponsors have said SB1065 would “ensure that runaway juries cannot impose unreasonable judgments against people who are economic drivers in Oklahoma.” Supporters have said they believe the current state Supreme Court justices would rule in their favor for the change.
Another bill, SB827, would increase the maximum compensation to $500,000. It also would remove the exception to the limitation on noneconomic damages for acts based on gross negligence, fraud or intentional conduct.
South Carolina
A bill moving through the South Carolina Senate is described as a pursuit to level the legal playing field for truck drivers and others.
The Senate Judiciary Committee voted to advance a bill that would adjust how fault is determined in civil lawsuits.
The American Tort Reform Association has explained that under state law, if multiple parties are named in a lawsuit and some of those parties settle outside of court, the remaining party could be held responsible to pay 100% of any monetary damages awarded in trial, even if they were only 1% responsible.
S244 would make defendants responsible only for their percentage of fault.
The bill awaits further consideration in the Senate. A similar bill, H3849, is in the House Judiciary Committee. LL
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