Legal
Iowa Takes a Stand Against Unfair Nuclear Verdicts Targeting Trucking Industry
Iowa’s Governor, Kim Reynolds, has signed a bill into law that limits pain and suffering compensation to $5 million in trucking accident cases. This step was taken due to the increase of “nuclear verdicts” by juries that exceed $10 million across the country.
Initially, the Iowa Senate limited non-economic damages to $2 million in February, but the Iowa House increased the cap to $5 million due to conflicting interests and lack of political support. Starting in 2028, this new law will adjust compensation depending on inflation. Additionally, the House has also made changes to employer liability, specifically regarding freight carriers hiring unsafe drivers.
“While many said it was a bridge too far for the Iowa Motor Truck Association and trial attorneys to come together and support — support tort reform, commonsense tort reform,” Iowa state Sen. Mike Bousselot reportedly said. “I think the goal of this amendment is protecting Iowans who are injured while lowering and protecting predictability and stability for critical components of our supply chain.”
Nuclear verdicts are becoming increasingly common and are hitting trucking operations and manufacturers hard. News outlets frequently report on large truck accidents, which raises questions about whether truckers are being unfairly portrayed or if the compensation for non-economic damages is excessive. Regardless, the verdicts are substantial, with a recent one coming in at $280 million in Muscogee County, GA.
These large awards are driving up the cost of trucking insurance, making it more difficult for businesses to operate. The challenge is finding a balance between providing fair compensation for victims and keeping the trucking industry sustainable.
Sen. Adrian Dickey, chairman of the Iowa Motor Truck Association, is pushing back on claims that state truckers enjoy low insurance rates, seeking fairness for all involved parties.
“Trucks in the construction industry experience much less liability risk than over-the-road semis. That’s why their insurance is cheaper,” Dickey reportedly said. “Our rates have increased 75 percent based on the nuclear verdicts and settlements, and less than 25 percent of the increase is actually due to the factors that they should be based on.”
In the past, lawsuits related to medical malpractice had a limit of $2 million, with hospitals being held liable for up to $1 million for non-economic damages. However, this cap does not apply to accidents involving trucks, and drivers under the influence are subject to a higher liability threshold.
Source: Truckers Report
CDL Training
Ohio Pursues Legal Action Against Trucker for Alleged Toll Skipping
An Illinois-based trucker, Moath Musamih, from Orland Park, has been formally indicted in Ohio on grand theft charges for allegedly avoiding nearly $22,000 in turnpike tolls. The indictment, filed on April 21 by a Williams County grand jury, accuses Musamih of a fourth-degree felony relating to unpaid tolls, with potential penalties including up to 18 months imprisonment, a $5,000 fine, and restitution.
Prosecutors assert that Musamih’s truck was monitored with open-road tolling technology for close to two years. Despite receiving multiple payment notifications, the tolls remained unpaid. The indictment also includes a clause to confiscate the 2012 Freightliner Cascadia allegedly used in these offenses.
County Chief Investigator Andrew Skiles noted that the Ohio State Highway Patrol had been keeping tabs on Musamih for some time due to the unpaid tolls. According to Skiles, Musamih is an owner-operator whose vehicle, reportedly registered under his wife’s name, was regularly tracked traveling extensive distances on the Ohio Turnpike using an E-ZPass transponder.
An Ohio State Highway Patrol officer encountered Musamih at a service plaza on eastbound Interstate 80, where an incident report was filed for “Theft by Deception.” The report included accusations of theft without consent and engaging in corrupt activities.
Williams County Prosecutor Katherine Zartman opted for criminal proceedings against Musamih due to the significant total of approximately $21,991 in unpaid tolls over an extensive period from April 2024 to April 2026. The decision to pursue a fourth-degree felony charge was influenced by Musamih’s alleged repeated offenses and the proposed forfeiture of his semi-truck as it was deemed contraband linked to the criminal activity.
The Ohio Turnpike and Infrastructure Commission, through its advanced open-road tolling system launched in April 2024, identified Musamih. Executive Director Ferzan Ahmed emphasized the aim to maintain optimal conditions on the turnpike while highlighting the challenges posed by companies that fail to settle their toll liabilities, despite numerous reminders and collection attempts.
In a broader context, the commission recently disclosed a list of 315 trucking companies accused of evading $5.2 million in tolls over the past two years, indicating a widespread issue with rogue operators.
Business
Jury Says Wabash Owes $462 Million in Fatal Crash Case
Summary:
A St. Louis jury awarded $462 million in damages against Wabash National Corp., a trailer manufacturer, for its role in the deaths of two men who died in a 2019 crash when their car went underneath a Wabash trailer. The jury determined that Wabash failed to install safer trailers for over 30 years. Wabash is reviewing its legal options and argues that the trailer met all existing safety standards at the time of manufacturing.
News for You
A St. Louis jury has ruled that Wabash National Corp., a trailer manufacturer, must pay $462 million in damages related to a 2019 crash that resulted in the deaths of two men, Taron Tailor and Nicholas Perkins. The crash occurred when their car collided with the rear of a Wabash-manufactured trailer, and the rear impact guard failed, allowing the car to slide under the trailer. Each family received $6 million in compensatory damages, and an additional $450 million was awarded in punitive damages, which the plaintiffs argue represents the amount Wabash saved by not upgrading to safer trailer designs over three decades.
Wabash National, headquartered in Lafayette, Indiana, responded to the verdict by stating that the trailer involved in the crash was manufactured in 2004 and met all regulatory standards at the time. They disagree with the jury’s decision, arguing that no existing rear impact guard or safety technology would have changed the outcome of the crash. Wabash also pointed out that evidence, including the fact that the driver’s blood alcohol level was above the legal limit and that neither the driver nor the passenger was wearing seat belts, was not presented to the jury.
The case has drawn attention to the broader issue of underride crashes, where a smaller vehicle slides under a truck or trailer, often resulting in severe injuries or fatalities. The plaintiff’s legal team argued that Wabash never conducted effective crash tests on their two-post impact guards and chose not to upgrade to safer, modern four-post designs to save money. They also criticized the existing federal safety standards for underride guards as inadequate and outdated.
This verdict could have significant implications for the trucking industry, which has historically resisted stricter regulations on impact guards. Advocates for crash victims are hopeful that the ruling will prompt federal regulators to enforce more robust safety standards for underride guards, which they argue are necessary to protect road users.
Wabash is currently evaluating its legal options and maintains confidence in the safety and quality of its products. The company has stated that this ruling will not deter them from continuing to provide trailers that contribute to road safety.
How This Affects You: Truck Drivers
If you’re a truck driver, this case highlights the importance of trailer safety and the ongoing discussions around underride guards. The ruling against Wabash could lead to stricter regulations for trailer manufacturers, including potential updates to the requirements for underride guards on trailers. As a driver, this could impact the type of equipment you use, and it may also increase the safety measures on the roads.
For those in the industry, staying informed about changes in safety regulations and equipment standards is crucial. Upgraded underride guards could prevent tragic accidents and improve overall road safety for all drivers. As discussions around trailer safety continue, it’s important for truck drivers and companies to prioritize compliance with the latest safety standards to minimize risks and liabilities.
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Legal
GOT Truckers Act Supported by OOIDA to Help Increase Truck Driver Earnings
A recent final rule from the U.S. Department of Labor expanding overtime protections for millions of workers excludes truck drivers. Nevertheless, the Owner-Operator Independent Drivers Association (OOIDA) is actively supporting a legislative proposal aimed at eliminating a longstanding overtime exemption for motor carriers.
Published on April 23, the final rule raises the salary threshold for exempting salaried employees from overtime compensation. Initially set at $35,568, this threshold will climb to $43,888 by July 1 and further to $58,656 by Jan. 1, 2025.
Beginning in 2027, the threshold will be adjusted every three years based on relevant wage data. These adjustments are expected to impact approximately 4 million workers, necessitating businesses to either meet the threshold or compensate employees for overtime hours beyond the standard 40-hour work week.
The Wage and Hour Division of the DOL proposed these changes last September, undergoing scrutiny through over 33,000 public comments before its official finalization.
“This rule will restore the promise to workers that if you work more than 40 hours in a week, you should be paid more for that time,” said Julie Su, the Department of Labor’s acting secretary. “Too often, lower-paid salaried workers are doing the same job as their hourly counterparts but are spending more time away from their families for no additional pay. That is unacceptable. The Biden-Harris administration is following through on our promise to raise the bar for workers who help lay the foundation for our economic prosperity.”
OOIDA submitted comments in November urging the administration to amend the Fair Labor Standards Act of 1938 to ensure that employee truck drivers are eligible for overtime pay. Currently, the FLSA exempts motor carriers from paying their truck drivers time-and-a-half for hours exceeding 40 in a week.
“The FLSA motor carrier exemption was originally enacted in 1938 to prevent truckers from working excessive hours but now prevents them from receiving adequate compensation in the modern trucking industry,” OOIDA wrote. “Ironically, this exemption is now part of the reason why drivers regularly work more than 40 hours a week.”
Despite truck drivers being excluded from the final rule, OOIDA played a role in crafting the Guaranteeing Overtime for Truckers Act. This legislative proposal, introduced in both the House and Senate, seeks to eliminate the overtime exemption for motor carriers.
“While denying guaranteed overtime pay is first and foremost unfair to truckers, the motor carrier exemption also contributes to supply chain inefficiency,” OOIDA wrote. “For far too long, the trucking industry has generally only offered compensation for detention time if waiting times exceed two hours. But even this pay is not provided to all drivers. As a result, entities throughout the supply chain, including shippers, receivers and others, lack a financial incentive to load and unload trucks in an efficient manner.”
Representative Jeff Van Drew, R-N.J., who introduced the bipartisan bill in the House, emphasizes its commitment to fairness.
“Let’s be fair,” Van Drew said. “Truckers are breaking their backs. They sincerely are what makes America move. Our country would be in a whole lot of trouble if we didn’t have truckers working for us every single day. When people don’t work hard, that’s up to them, and maybe they don’t deserve to make a lot of money. But truckers do, and they deserve to be treated fairly and make a decent income.”
OOIDA is actively encouraging its members to rally support for the bills by reaching out to their lawmakers through OOIDA’s Fighting For Truckers website.
Source: Land Line
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