Major Claims Against Interstate Trucking Companies Belong in Federal Court
Lane Kidd is the Managing Director of the Trucking Alliance. With over two decades of leadership and experience in the trucking industry, Lane has pivotal insight into the nation’s supply chain and logistics. Coming from a family with deep trucking roots, Lane also brings firsthand experience to his advocacy, splitting his time between Washington, D.C., and Lexington, KY. The following is an editorial about the dangers of state-level “nuclear verdicts” and their potential to disrupt the industry.
You’re in a company vehicle, driving in a snowstorm on an interstate highway. Everyone has slowed down and you’re creeping along at 15 mph. All is well. You notice a car going in the opposite direction, sliding off the highway and into the median. But the car crosses the median and comes up on your side of the interstate, still sliding out of control and veering into your path.
You quickly tap your brakes to slow down even more, but it does no good. The car slams into your vehicle head-on. The driver is killed, and a passenger is gravely injured. You’re okay. The investigating trooper on the scene concludes you did nothing wrong.
But the victims’ family sues you and your employer anyway. The claim is filed in county court for trial, in the same county where the accident occurred and near where the family lives. Unbelievably, the jury finds that you and your employer were negligent. The judge reads the jury’s verdict: an award of $90 million to the family.
This really happened. And important to the story, you are a truck driver, and your employer was one of the nation’s largest interstate trucking companies headquartered in another state.
Interstate Commerce Isn’t Local
Freight moves across America every day, most of it by truck. The seamless flow of goods across states is critical to the US economy. In fact, it’s so important that The Constitution gives Congress the sole power to regulate all aspects of interstate commerce.
For example, if you sell motorcycles and they are damaged in shipment to your customer, federal law protects your business. You’re required to file your claim in federal court. That way you have a uniform legal framework to recover your money, regardless of the state in which the accident happened.
However, if the accident that damaged your motorcycles also injures people, they can file their claim in state, county, or local court. That’s a problem.
Commercial trucking companies (or motor carriers) and their drivers must comply with hundreds of federal laws and regulations, not state laws. Commercial drivers must also comply with a host of federal regulations, be drug and alcohol-free, adhere to strictly enforced hours behind the wheel, and more.
State legal systems have different liability laws. Local judges and juries aren’t familiar with the myriad of these federal laws that govern motor carriers and drivers. These judges are frequently elected, and local politics can influence the courtroom, especially if the defendants are out of state.
Plaintiff attorneys take advantage and use various tactics to persuade juries that the victims deserve awards that go beyond their economic damages, like medical bills and lost wages. The juries are persuaded to tack on millions of dollars in non-economic and punitive damages, losses related to quality of life, pain and suffering, emotional distress, disfigurement, and even loss of enjoyment of life. These examples are more subjective and difficult to quantify. In fact, any jury award that is more than $10 million and is largely for non-economic and punitive damages could be deemed as an excessive award.
These excessive awards occur when neither the company nor the driver were deemed to have been reckless. Yet the awards frequently force drivers out of a job. The business owner doesn’t have the money to pay the award and winds up in bankruptcy court. Everyone, including the accident’s victims, loses.
Federal Court is the Right Venue
Unlike state and local judges, federal judges are nominated by the U.S. President and confirmed by the U.S. Senate. They serve lifetime appointments. Federal judges have greater knowledge to interpret and apply federal regulations governing motor carriers. This expertise is critical in the instructions given to jurors before they reach a decision.
Federal jurisdiction will be more reliable and consistent for all parties, regardless of the state in which the accident occurred. State legal systems should not have the power to restrict interstate commerce by punishing motor carriers and levying excessive verdict awards. Such treatment threatens interstate commerce and the seamless flow of products upon which our economy and citizens depend.
The Trucking Alliance is committed to advocating reforms that can foster real changes to make commercial truck drivers safer and more secure. These reforms can improve highway safety and reduce large truck crashes. Learn more about our key policy efforts and keep up to date on the trucking industry on our blog.