Tort reform efforts that could affect truck drivers continue at statehouses.
The Owner-Operator Independent Drivers Association advocates for reform to civil liability rules to reduce lawsuit abuse around the nation. OOIDA contends that 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.
Virginia
A Virginia bill is on the verge of becoming law that covers the right to appeal in civil litigation.
Statute limits the size of appeal bonds to $25 million.
State lawmakers approved a bill that would increase the appeal bond cap to $200 million. An annual inflation adjuster is included.
The bill, HB2351, has moved to Gov. Glenn Youngkin.
Critics, including the Virginia Trucking Association and the American Tort Reform Association, wrote in a letter to the governor that the bill would “undermine the fairness of Virginia’s civil justice system by needlessly making appeals more expensive and, in many cases, practically unattainable.
“A bond of ($200 million) is beyond the financial reach of many defendants and especially small businesses,” the letter states. “When a defendant cannot secure an appeal bond, it will either be forced to settle on unfavorable terms or pushed into bankruptcy.”
The governor has sent back to legislators his recommendation to revise the bill. His change calls for reducing the proposed $200 million amount to $35 million.
State lawmakers can make the change and resubmit HB2351 to the governor for his signature or can refuse the change, and the bill will die.
Arkansas
Arkansas has a new law that is described as restoring fairness and transparency in the state’s judicial system. The new rule limits “phantom damages.”
Plaintiffs in the state had been able 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.
The rule change is described as permitting plaintiffs to recover only what insurance companies have paid for medical treatment, not the amount charged by hospitals and physicians.
“(The new law) 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,” Sen. Jon Eubanks, R-Paris, said while speaking on the House floor.
Advocates have noted it is common practice for medical providers to reduce bills for care and that the new law does not impact the recovery of future medical costs or of noneconomic damages such as pain and suffering.
South Carolina
The South Carolina Senate approved a bill that covers joint and several liability for most types of businesses, including truck operations.
The legislation, S244, would adjust how fault is determined in civil lawsuits.
The American Tort Reform Association explained that under existing law, if multiple parties are named in a lawsuit and some of those parties settle outside of court, the remaining party can be held responsible to pay 100% of any monetary damages awarded in trial, even if they were only 1% responsible.
Bill supporters have said the current rules allow plaintiff’s attorneys to target defendants with more money or favorable insurance policies on cases while settling with other parties. The goal for the attorneys would be to maximize how much they could collect.
The bill would make defendants responsible only for their percentage of fault, unless a business is determined to be mostly at fault. When found to be more than 50% at fault, a business could be held responsible for paying the full amount of economic damages.
Noneconomic damages would not be affected by the bill. Such damages would continue to be split proportionally.
The bill has moved to the House.
Minnesota
A Minnesota bill covers civil action that could involve truck drivers.
HF1986 would repeal statute that prohibits evidence of seat belt use from being admissible in personal injury or property damage cases.
Advocates have said it is important that the state not stand in the way of juries’ access to information about whether a vehicle occupant was wearing a seat belt. They’ve added it has nothing to do with fault or with cause; it would be used only in determining damages.
Nebraska
One Nebraska bill covers the legal doctrine of respondeat superior. The term is for a legal doctrine that holds an employer responsible for the actions of their employees if those actions are committed within the scope of employment, according to Cornell Law School.
LB79 states if an employer admits that during an incident involving a large truck, 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 respondeat superior.
Oklahoma
Noneconomic damages are the focus of an Oklahoma bill.
Senate lawmakers advanced a bill that would reinstate a cap on noneconomic damages instituted in 2011 that the Oklahoma Supreme Court later ruled to be unconstitutional. The statute capped compensation for pain and suffering at $350,000 for many lawsuits.
SB1065 would reinstate that cap and adjust for inflation to $500,000. Exceptions would apply for cases that include wrongful death.
Bill sponsors have said reinstating the cap would “ensure that runaway juries cannot impose unreasonable judgments against people who are economic drivers in Oklahoma.” Supporters have added that they believe the current state Supreme Court justices would rule in their favor for the change.
The bill awaits House consideration. LL
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