Florida Truck News - Summer 2022

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FLORIDA TRUCK NEWS SUMMER 2022 | 1 18 9 14 6 4 | FTA Law Firm Members Step Up to Fight Lawsuit Abuse Widespread lawsuit abuse is one of the most pressing threats to the trucking industry – and FTA’s law firm members are stepping up to fight against it. TABLE OF CONTENTS SUMMER 2022 President’sDEPARTMENTSMessage 3 Florida Truck Driving Championships Resumes After Two-Year Gap 6 You Can Make a Difference: Contribute to the FTA PAC 9 Moves and News 22 FEATURES FTA Law Firm Members Step Up to Fight Lawsuit Abuse 4 Know Your Florida Legislator: Rep. Jenna Persons-Mulicka 10 Returning Fairness to Florida’s Courts 14 FTA Members Convene for Regional Events 16 INDUSTRY INSIDER ATRI Report Analyzes Rising Trucking Insurance Rates 12 Top 10 Tips for Insurance Claims Recovery 18

Copyright - 2022 Florida Trucking Association. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of FTA. For subscription information, please contact FTA at 850-222-9900.

ALIX MILLER, PH.D. PRESIDENT AND CEO, FLORIDA TRUCKING ASSOCIATION

President’s Message

VOLUME 81, NUMBER 2 • 2022 STAFF: President and CEO, Alix Miller

ADVERTISING

FLORIDA TRUCK NEWS SUMMER 2022 | 3

The FTA Team is just back from our 2022 Annual Conference in Cape Coral. We held committee meetings, a (very) full day of speakers and a packed house for a keynote from Governor Ron DeSantis. It’s hard to believe, but we’re already starting to plan for 2023 at The Breakers. FTA is busier than ever, and we are committed to make sure that every voice in our membership is heard. So we’re extending the event to include meetings for all committees and more networking opportunities. We know how busy you are. We will continue to schedule regional meetings, webinars and opportunities for you to get the most value out of your membership to the Association.

Our first priority is to advocate for the trucking industry—and you. The most important work we do is to trouble-shoot; serve as a liaison between your company and state and federal regulatory agencies; and increase the power and visibility of FTA. We problem-solve hundreds of issues a year for our members, to help keep your companies moving and succeeding.

Vicealix@floridatrucking.orgPresidentofOperations, Brian Nerland Directorbrian@floridatrucking.orgofCommunications, Holly Brooks Directorholly@floridatrucking.orgofMemberServices, Chris Heil chris@floridatrucking.org

For those of you who attended Annual Conference, I hope you saw some positive changes. 2022-2023 will continue to be about increased visibility, transparency and inclusivity. We’re looking for new members—suppliers and carriers of all shapes and segments in the industry. We’ll continue to build alliances with other industries that rely on and have a stake in trucking. We will meet with elected officials and help you with grassroots efforts in your district. We will work to engage both established and new members to get more involved.

Trucking is facing a lot of challenges these days—and it is our honor and privilege to fight for you, For The Association.

PUBLISHED BY: 350 E. College Ave. Tallahassee, FL 32301 www.floridatrucking.org Holly Brooks Sales: Holly Brooks DESIGN & LAYOUT Art Director: Jeremy Ashmore

Postmaster: Address changes to Florida Trucking Association, 350 E. College Avenue, Tallahassee, FL 32301

So, if you see a survey from us—whether from ATA, ATRI or other organizations, please take the time to fill it out. If you’re interested in safety, technology, membership, public policy or leadership, let us know. If you have a safe and committed driver, recommend him or her for the next Florida Roam Team. If you have an up-and-coming leader in your executive team, encourage them to apply for the 2.0 Leadership Class. We rely on your expertise and experience to move the industry forward.

Disclaimer: The opinions expressed by the authors of the articles contained in Florida Truck News magazine are those of the respective authors and do not necessarily represent the opinion of Florida Trucking Association or its member companies. Printed in Florida. Please recycle where facilities exist.

EDITORIAL Editor:

FTA Law Firm Members Step Up to Fight Lawsuit Abuse

J.W. Taylor of Taylor Johnson PL is actively involved in FTA’s tort reform efforts.

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The legal climate in Florida has been getting increasingly worse over the years, with settlements and verdicts not reflective of evidence or the case – but Florida Trucking Association and its law firm members are stepping up to fight the growing trend of lawsuit abuse.

There’s no question lawsuit abuse is one of the most pressing threats currently faced by Florida’s trucking industry. Look no further than the countless personal injury law billboards lining the roads and interstates, targeting and demonizing the trucking industry while advertising large sums of money to be made from truck-involved accidents.According to a study from the American Transportation Research Institute (ATRI), the average size of large verdict cases involving trucking companies increased from about $2 million in 2010 to $22 million in 2018 – an increase of 1000%. And last year, a new record for nuclear verdicts against a trucking company was set with a $1 billion verdict handed down by a jury in NassauFloridaCounty.iseven on the American Tort Reform Foundation’s “Judicial Hellholes” watch list.

J.W. Taylor is the founder and managing partner of Taylor Johnson PL,

In 2021, the Florida Supreme Court brought the state’s antiquated summary judgment standard in line with federal standards and most other states in the U.S. This was a massive victory for FTA and its members because it helps prevent meritless cases from proceeding to costly jury trials. Leading up to the state high court’s ruling, FTA and the Florida Justice Reform Institute filed a joint amicus curiae brief asking for the summary judgment standard to be updated.

“The Dial decision, adoption of the federal summary judgment standard, and return to the Daubert standard for scientific and expert evidence have all been big victories,” said Chris Barkas, a shareholder in Carr Allison’s Tallahassee office. “It is a clear signal this Supreme Court knows there are issues and is inclined to fix them for the betterment of all litigants in Florida.”

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Earlier this year, FTA scored another major win in the fight against lawsuit abuse when the Florida Supreme Court issued its opinion in Dial v. Calusa Palms Master Association, Inc. The court’s decision will cut down on excessive settlements and jury verdicts by limiting personal injury plaintiffs to introducing only the discounted amounts Medicare paid. Inflated medical damages has been a priority issue for FTA for years – and FTA led the effort to file an amicus curiae brief regarding the case prior to the court’s ruling.

Trucking companies have no choice but to pass these insurance coverage cost increases on to consumers. Just as record diesel prices contributed to inflation, higher insurance premiums for trucking companies will raise the prices of goods delivered by trucks, which is… pretty much everything.

Data shows that widespread lawsuit abuse is driving up insurance premiums for Florida’s trucking companies, many of which are small, locally-owned businesses.

“The cost of insurance in the state has skyrocketed parallel to the runaway verdicts and unscrupulous plaintiffs’ attorneys,” said Kristen Johnson, a named partner at Taylor Johnson who manages the firm’s litigation group. “There has been a trend among plaintiffs’ firms to target trucking companies, which we have seen on the many, many billboards throughout the state.”“Florida is an increasingly unfavorable place for any business or defendant to get sued, but this is especially true if you are a trucking company,” said Kyle Weaver, an attorney at FTA member company Carr Allison. Weaver is based in the firm’s Tallahassee office and serves on FTA’s Board of Directors and Tort Reform Task Force.

ATRI found that insurance premium costs per mile increased overall by 47% from 2010 to 2020. Further, small fleets paid more than three times as much as very large fleets in 2020 on a per-mile basis.

Johnson noted that there has been a growing interest in the state and federal courts regarding the trucking and transportation industry. “Now that shipping and the supply chain are headline news items, the courts seem to be paying better attention to these cases.”Despite these victories, there is still work to be done to mitigate lawsuit abuse. FTA’s Tort Reform Task Force is still working on efforts to increase transparency in medical damages, as well as leveling the playing field between defendant and plaintiff attorneys on what can be entered into evidence.

Taylor advised that trucking companies can better position themselves in the fight against frivolous lawsuits by getting involved in FTA’s efforts. “Be the voice of change you want. There are plenty of seats available on FTA committees, including the Public Policy Committee. FTA gives us that voice.”

“The recent thermonuclear cases are proof that the legal challenges trucking and logistics companies face are all too real – even if the verdicts are detached from reality,” said Taylor.

COVER STORY: FTA Law Firm Members Step Up to Fight Lawsuit Abuse < a national transportation law firm and FTA member company headquartered in Winter Haven. He is actively involved in FTA’s tort reform efforts and recently concluded a term on the Association’s Board of Directors. Many clients of Taylor Johnson have been FTA members for decades, so the firm is all too familiar with impact of rapidly increasing settlements and verdicts.

“FTA continues to be a leader in policy change and our firm, along with other excellent member law firms, have the privilege of helping in the case law,” added Taylor. “The FTA’s effort in curbing lawsuit abuse is making a difference.”

“Our trucking companies are the backbone of our modern society,” added Weaver. “The saying ‘If you’ve got it, a truck brought it’ is so true. Unfortunately, the public only loosely believes this concept, and it does not seem to translate well into the jury room when decisions are being made.” But it seems as though the tide is beginning to turn.

As in previous years, the Herman Fauss Scholarship Fund Golf Tournament was held the day before TDC kicked off. The tournament

“The Florida Truck Driving Championships, to put it simply, is all about the drivers and honoring the work they do to prioritize safety and excellence in the profession,” said TDC Chair Bill Roy, Safety Manager at Walmart Transportation. “There was a lot of anticipation leading up to TDC this year since it was our first competition in two years – and the drivers, volunteers, sponsors, and FTA staff didn’t miss a beat, ensuring the event was top-notch.”

Florida Truck Driving Championships Resumes After Two-Year Gap

After a two-year hiatus due to the pandemic, the Florida Truck Driving Championships (TDC) resumed this year in Daytona Beach – and there was excitement and energy in the air from start to finish. The event drew more than 230 of the top professional commercial motor vehicle drivers in the state with a combined 500 million miles of safe driving and hauling freight.

Drivers from a wide range of companies and 10 different vehicle classes convened at the Ocean Center from June 9 -11 to compete. Over the course of three days, each driver was evaluated based on a written test, a pretrip inspection, and a skills course.

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FLORIDA TRUCK NEWS SUMMER 2022 | 7

David Guinn, a professional truck driver for Publix Super Markets, was named the Grand Champion of the 2022 Florida TDC. The Grand Champion title is the competition’s highest honor and is awarded to the top-performing driver of all classes combined. Guinn participated in the 5-axle class.

Jose has four decades of safe driving under his belt, racking up more than 4.5 million safe miles. His commitment to safety is described by his colleagues as “awe-inspiring” and has earned him a spot on Oakley’s driver training team. “On behalf of Florida Trucking Association, we congratulate David and Jose for winning the two top honors of the Florida Truck Driving Continued on Page 8

The event concluded with an awards banquet at the Hilton Daytona Beach Oceanfront Resort, where more than 900 people – including drivers and their families, safety managers, and company executives – gathered to celebrate.

raises funds for the Herman Fauss Scholarship program, which provides scholarships to children and grandchildren of commercial vehicle drivers employed by FTA member companies.Thefirstday of TDC included a driver orientation, rookie huddle, written test, and course orientation. During the orientations, drivers were briefed on the course obstacles before completing a course walk-through later in the day. The pre-trip inspection and skills course portions of the competition were held during the second and third days.

During the TDC awards banquet, FTA also named its 2022 Driver of the Year: Jose Ramos, a professional truck driver for Oakley Transport. The Driver of the Year is selected based on several items including the driver’s safety record, professional experience, and community leadership.

2022 Driver of the Year Jose Ramos (center) Grand Champion David Guinn

SrUPS December

8 | SUMMER 2022 FLORIDA TRUCK NEWS Anthony HudsonFlorida Rock & Tank LinesJanuary Jose Ramos Oakley Transport February Clifford King Exxact Transport March Fred Combs Walmart Transportation April James HallTrans-Phos May Paul Medders Walmart Transportation June Jeffrey Widdows UPS July Andrew Barford Oakley Transport August Keith CampbellFlorida Rock & Tank LinesSeptember Clifford LaymonCarroll Fulmer Logistics CorpOctober Dennis Heyward Exxact Transport November

Flatbed: Glenn Hosegood, FedEx Freight Corporation Sleeper: Anthony Tirone, Walmart Transportation Straight Truck: Becky Nelson, FedEx Express Tank Truck: Sheldon Brown, FedEx Freight Corporation

• Becky Nelson, FedEx Express (Straight Truck Class)

Written Test: • Henr y Mahler, Yellow (Twins Class)

• Jottyn Santos, FedEx Express (5-Axle Class) Championships, and we applaud their dedication to safety and professionalism,” said FTA President and CEO Alix Miller. “Despite the challenges our professional truck drivers have faced over the past two years – from the pandemic to supply chain issues –they and the truck ing industry have always stepped up to keep Florida moving. TDC is an opportunity to recognize and celebrate that.” Class winners advance to the to the National Truck Driving and Step Van Driving Championships in Indianapolis, Aug. 16-20.

Continued from Page 7 FLORIDA TRUCK DRIVING CHAMPIONSHIPS Many thanks to our 2022 TDC Sponsors!  COURSE SPONSORS CHAIRMAN’S CIRCLE SPONSORS EVENT EXHIBITORS CHECKERED FLAG SPONSOR START YOUR ENGINE SPONSORS 2022 Drivers of the Month 2022 TDC Class Winners

3-Axle: Miguel Sanchez, UPS 4-Axle: Jorge Alfonso, FedEx Freight Corporation 5-Axle: David Guinn, Publix Super Markets

• Edward Pennington, FedEx Freight Corporation (Sleeper Class)

Pre-Trip: Anthony Tirone, Walmart Transportation Rookie of the Year: Brandon Orozco, FedEx Express Large Team: FedEx Freight Corporation Small Team: Old Dominion Freight Line

Gary Barton,

Twins: Leslie Smyth, FedEx Freight Corporation Step Van: Michelle Poirier, FedEx Express Auto Transport: Daniel Ruiz Jr., Southeast Transportation Systems

FLORIDA TRUCK NEWS SUMMER 2022 | 9

Our industry has never been more visible than it is now – and we must keep this momentum going as we look ahead to the 2022 elections and the 2023 legislative session. All 160 House and the statewide cabinet members are up for reelection this year. And as new leaders move into office, it’s important that we make sure trucking is front and center.

One of FTA’s top priorities is the fight against lawsuit abuse, which has created a frustrating and expensive legal climate for Florida’s trucking companies. Frivolous lawsuits and inflated damages have led to rising insurance rates, which are hurting our industry and economy. The Association’s Tort Reform Task Force is working every day to develop and implement strategies that will fix our broken judicial system.

Looking back over the past year, FTA has had no shortage of political victories – from our strong relationship with the Governor’s Office to the passage of the multi-year IRP plate bill. We were also successful in securing a state appropriation of $225,000 to implement a trucking industry workforce recruitment and public safety campaign in partnership with the Florida Department of Economic Opportunity. This is the first time in the history of FTA that we have been successful in receiving funds from the state budget to advance the priorities of the trucking industry.

Lend your strength to FTA’s fight by making a financial contribution to the FTA PAC. Your contribution will support key legislators, cabinet members, and the Governor, who we will ask to improve legal practices in the state – so trucking is on a more level playing field against plaintiff’s attorneys. Our 2021 FTA PAC contributions had a 100% success rate with contributions to elected officials who are pro-business and support the trucking industry. We can’t sit back and allow litigation abuse to continue harming our industry. Our future depends on this fight – and your support. Please make a contribution to the FTA PAC at floridatrucking.org/pac before the November elections, so our probusiness friends know we’ve got their backs before Floridians hit the polls.

Keith Walpole FTA PAC Chair

You Can Make a Difference: Contribute to the FTA PAC

“Logistics and transportation costs are the foundation of most construction projects. Repairs that used to take days can now take weeks or months to get done, because the need is so great. We need to do what we can to help the trucking industry succeed.”

Persons-Mulicka says her parents installed in her a passion to help others and be engaged in the community. Her father Armor is now taking her lead and presently running for the Lee County School Board. “I have learned so much from my mom and dad, and am super proud that my dad has now stepped up to run for our School Board,” PersonsMulickaPersons-Mulickasaid. and her husband David Mulicka reside in Fort Myers, and she is a proud step-mother to Charlie. Together, the Mulicka family enjoys time out on the water whether it be fishing, or just enjoying time on the boat

In addition to her own business experience, Persons-Mulicka is married to David Mulicka, a contractor who owns and runs Honc Destruction, a successful demolition company in Southwest Florida. Persons-Mulicka has seen the challenges that businesses like her husband’s have in recruiting and retaining talented CDL drivers and diesel mechanics. She understands how the shortage of workers in those two trades negatively impacts Florida.

Persons-Mulicka filed another bill this past Legislative Session, House Bill 647, to limit travel in the left-lane on interstate highways to passing-only as another idea to help ease travel by dramatically improving safety and traffic flow for over-the-road transport. That bill did not make it through the process, but she hopes to bring it back next year.

grateful for all the truck drivers and mechanics who work hard daily to provide our communities with day-today necessities. They are the backbone of our infrastructure, and we would not be able to thrive the way we do without them.”Tohelp combat these challenges, Persons-Mulicka carried House Bill 4595 for the 2022 Session which provided $225,000 in appropriations for Florida Trucking Association, which will fund a program to recruit needed truck drivers and diesel mechanics, as well as to promote an educational campaign on how to share the road safely with trucks.

KNOW YOUR FLORIDA LEGISLATOR: REP. JENNA PERSONS-MULICKA

“I have seen the far-reaching challenges that we have with supply chain issues and recruiting new workforce in our trucking and construction industries,” PersonsMulicka said. “We are extremely

Persons-Mulicka is presently running for re-lection in District 78 to serve for a second term. She has been actively engaged in the Fort Myers area her entire life. After graduating from Fort Myers High School, she attended Evangel University on a tennis scholarship followed by The George Washington University Law School, and then returned home to build her career and give back to her community where she grew up. She’s been involved with numerous charitable and civic organizations to champion for greater opportunities for all, including being a strong champion for job opportunities for persons with disabilities.

“I have had to worry about making payroll so my employees can pay their bills and provide the best opportunities for their children,” Persons-Mulicka said. “In a time of rising inflation and costs due to failed federal policies, I understand how every dollar matters to Floridians and in Florida, we will fight to protect those hard-earned dollars.”

State Representative Jenna PersonsMulicka has represented District 78, which includes a part of Lee County, in the Florida House of Representatives since 2020. A sixth-generation resident of Lee County, Persons-Mulicka’s roots are deeply embedded in the state of Florida. She not only understands the history of how Florida has developed, but also the present need for and challenges facing the trucking industry.

In addition to serving in the Florida House, Persons-Mulicka serves as the Chair of the Lee County Delegation. She also currently serves Floridians on the Florida Commission of the Status of Women, to which she was first appointed in 2017 by former Senate President Joe Negron. Her family has been involved in the development of Florida long before highways were built, dating back to her great-great-great grandparents John and Penelope Powell, who were one of the first settlers in Fort Myers, sailing up the beautiful Caloosahatchee River in 1867 and settling at the abandoned fort located in what is now the Fort Myers Downtown River District. John Powell was later elected to serve on the first Board of County Commissioners after the creation of Lee County in 1887.

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Persons-Mulicka’s first-hand experience not only comes from her public service in the Florida House, but also from her experience as an accomplished businesswoman and attorney. She practices law as a partner in the boutique law firm Strayhorn & Persons and has represented numerous businesses and property owners in dealing with contract, zoning, real estate, and property matters. She credits her experience in the business world as preparing her to tackle the toughest issues facing Florida.

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A report released in February from the American Transportation Research Institute (ATRI), “The Impact of Rising Insurance Costs on the Trucking Industry,” analyzes the immediate and longer-term impacts that rising insurance costs have on carrier financial conditions, safety technology investments and crash outcomes as well as strategies used by carriers to manage escalating insurance costs. It was based on detailed data from more than 80 carriers with a range of fleet sizes and sectors, representing nearly 95,000 commercial trucks operating in regions across the U.S. and Canada.

Why Insurance Premiums are Rising

Although frequency and crash severity increased from 2009 to 2018, ATRI found the rate of insurance cost hikes during the same period “far exceeds” the nominal rate increase in truckinvolved crashes. Based on the data, they concluded that a considerable percentage of total insurance cost increases do not relate directly to most carriers’ crash experience.

The Impact on Carriers To address higher premiums, the insurance costs study found that carrier strategies included decreasing insurance coverage levels, raising deductibles and/or SelfInsurance Retention (SIR) levels, and decreasing investments in other cost centers (e.g., salary/wages, bonuses, equipment purchase/maintenance).

“ATRI’s study corroborates the Triple-I’s research on rising insurance costs and social inflation – that increased litigation and other factors dramatically raise insurers’ claim payouts,” said Dale Porfilio, Chief Insurance Officer of the Insurance Information Institute, in a press release.

ATRI Report Analyzes Rising Trucking Insurance Rates

Rising insurance rates continue to create a challenging operating environment for motor carriers – and it is having a domino effect, ultimately requiring companies to redesign their long-term business strategies.

an incredibly unhealthy legal climate – proven by a recent $1 billion jury verdict for a crash involving a Andtractor-trailer.it’snotjust nuclear verdicts (jury awards exceeding $10 million) that are having an impact on the trucking industry. ATRI’s 2021 report, “The Impact of Small Verdicts and Settlements in the Trucking Industry,” showed that this category of litigation resulted in an average payment of between $406,386 and $449,792.

“External factors that go well beyond carrier safety force commercial trucking insurance costs to increase, which then requires carriers to redesign their business strategies. The higher premiums ultimately tend to be passed along to consumers in the form of higher prices for goods and services.”

ATRI reports that almost all motor carriers experienced substantial increases in insurance costs from 2018 to 2020, with small fleets paying more than three times as much as very large fleets in 2020 on a per-mile basis. – Image Credit: ATRI

“Industry safety is of paramount concern, but it is not the only factor that influences commercial auto insurance rates,” the report stated. “Litigation also puts financial pressures on insurers which are then passed on to motor Floridacarriers.”faces

It also found that 80% of carriers that reduced insurance coverage decreased their MCMIS crash rates the following year.

“This counter-intuitive finding appears to result from a heightened awareness of increased liability and exposure that leads to increased safety investments,” the study said. Despite reductions in insurance coverage, rising deductibles, and improved safety, ATRI reports that almost all motor carriers experienced substantial increases in insurance costs from 2018 to 2020. And there are disparate impacts depending on fleet size: Small fleets paid more than three times as much as very large fleets in 2020 on a per-mile basis. Takeaways ATRI warns that spending cuts –reducing wages, insurance coverage, equipment purchases, and maintenance costs – can increase the total cost of risk and result in longterm consequences such as increased crashes, worsening driver shortages, or lower productivity They advise carriers to look beyond insurance costs and evaluate all safety-related matters and expenses –such as driver training and safety technology investments – to plan for the long term.

In a separate preceding report, “An Analysis of the Operational Costs of Trucking,” ATRI found that insurance premium costs per mile increased overall by 47% from 2010 to 2020.

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Finally, the fee awards for plaintiff lawyers if their proposals are activated (successful) after trial are substantial. A recent Duval County award was nearly $1,000,000 in a very simple automobile case. On the other hand, if a proposal filed by the defense wins, defendants and defense lawyers are limited to collecting fees at their contractual rate which is far less than the $500-$800/hour collected by plaintiff lawyers. Even still, many if not most plaintiffs are judgment proof, so obtaining a judgment and fee award after a successful defense PFS is usually meaningless and can never be Wecollected.suggest four reforms (at a minimum) to the proposal for settlement rule. First, extend the time period before a defendant may be served with a proposal for settlement.

Ninety days into the lawsuit is not enough time for a defendant to gather information and be in a position to respond to a proposal for settlement, which may have substantial financial penalties later on. Second, forbid the splitting of proposals for settlement between the company and company drivers (or in cases of pure vicarious liability), bringing an end to this silly legal fiction. Next, cap attorneys’ fees for successful proposals for settlement at a more reasonable hourly rate, or fix the attorneys’ fee award at a percentage of the judgment (if plaintiff prevails). Finally, to ensure defendants are able to experience the same benefit from a successful proposal, and to deter parties from using proposals for settlement unless they are truly acting in good faith – require the posting of a bond before a PFS may be filed. In the event a party succeeds on their PFS and tries to collect, they can look to the bondholder if the other party defaults on their obligation to pay the judgment.

Attorney Referrals to Medical Providers

For example, plaintiff may serve a proposal for settlement to the driver for $10,000 and to the company for $100,000. Payment of the $10,000 to extract the company driver from the suit does not end the entire case, so the company must stay in the lawsuit.

By Christopher Barkas and S. Kyle Weaver So many of our clients loathe being sued in Florida, and rightfully so. Unfortunately, civil defendants in Florida face an uphill and often unfair battle for a myriad of reasons. Among the issues are the Proposal for Settlement (PFS) statute; attorney referrals of plaintiffs to medical providers; outrageous non-economic damage (aka pain and suffering) awards; and the use of Florida’s outdated collateral source rule to incentivize plaintiffs against mitigating (reducing) their damages. The problems are not academic. In the past, Florida’s tort system accounted for $7.6 billion in direct costs, $11.8 billion in annual output, 126,139 jobs, and compensation paid out by the tort system was 3.6% of GDP, or about $4,400 per household annually. We can only imagine these grim statistics have worsened. Importantly for the trucking industry, the consequences are most evident in primary and excess insurance markets as premiums skyrocket, or coverage in certain layers is simply unavailable. We are trucking lawyers, and these are our problems: Proposal for Settlement Florida’s Legislature intended to incentivize parties to settle claims and punish parties who unreasonably failed to settle by making the “loser” pay the winner’s attorneys’ fees. In theory, it’s not a bad idea. We wrote in the Summer 2021 Florida Truck News about the many problems with proposals for settlement. Three major problems stand out with proposals. First, proposals can be sent to defendants as early as 90 days after they receive the lawsuit, meaning a defendant must have enough

In Florida, an attorney’s referral of a client to a specific medical provider is classified as attorney client privileged, and cannot be disclosed in discovery or at trial. The (incorrect) rule stems from a 2017 decision of the Florida Supreme Court in Worley v. YMCA. It is incomprehensible to think what doctor to visit is legal advice. As an attorney, our ethical and fiduciary responsibility is to act in the best interests of our clients. The question is whether “best interests of the client” means referral to a physician who is most qualified and will best help the client get better, or referral to a physician who will help the client obtain a favorable medical opinion and greater damages in the lawsuit. Communications between attorney and client are only privileged if they concern legal advice. Certainly, the client getting the best care and getting better is not legal advice. By contrast, the client maximizing the value of their lawsuit by selecting the best litigation doctor is legal advice. The latter is what has been sanctified by the Worley decision.

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Returning Fairness to Florida’s Courts: Two Trucking Lawyers’ Suggestions for Real and Lasting Reforms information (about liability, damages, venue, etc.). Second, proposals for settlement allow differing offers to be made to company and driver. Payment of the proposal to end the case against the driver does not end the case against the company.

As discussed earlier, ordinarily consumers want to pay less for the goods and services they need in the market. Consumers with a coupon for a TV purchase are unlikely to affirmatively ask to pay more for a TV. Unfortunately, under the existing incentive structure created in Florida’s courts – this is exactly what is playing out, but on a far more expensive scale. Many plaintiffs who have health insurance specifically direct their physicians not to bill their health insurance, or just visit litigation-only practices who do not accept any insurance.

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The Florida Supreme Court had a chance to overturn Worley in late 2021, but declined because it felt the issue was not truly before them for a decision. The Worley decision needs to be overturned quickly, and we hope the Supreme Court will take the next opportunity it is presented with to correct this dangerous (to society and our profession) decision.

Non-Economic Damage Reform

Mitigation of Damages and an Outdated Collateral Source Rule

Christopher Barkas is a shareholder in Carr Allison’s Tallahassee office where he defends transportation, employment, product liability and retail claims. S. Kyle Weaver serves as counsel in Carr Allison’s Tallahassee office. His practice is dedicated to the defense of transportation claims across Florida, Georgia, and Alabama. Carr Allison is a member of FTA.

The prevailing (and incorrect) view is evidence plaintiff has health insurance is not admissible because it is evidence of a “collateral source” of indemnity. The rule is an old one and has been modified or abrogated by statute in many places, including Florida. Here, the rule remains partially in effect and bars evidence of payments (for healthcare, for example) made on behalf of the plaintiff by a collateral source of indemnity. Courts and plaintiff lawyers have seized on this to say evidence the plaintiff had health insurance but did not use it, is collateral source evidence, and is therefore inadmissible. Pure legal fiction! It is also legally incorrect. The collateral source rule bars evidence of payments by collateral sources. There is no evidence of payments if plaintiffs do not use their health insurance to pay for care. It is, however, strong evidence of a plaintiff’s attempt to unnecessarily drive up their damages (aka fail to mitigate their damages) and of a plaintiff’s participation in a “litigation game.” Evidence of a plaintiff’s failure to submit their medical bills to available insurance should be admissible to expose the games being played by plaintiffs and their lawyers. .

The decision is bad public policy on a number of levels. It creates dramatic moral hazard problems for plaintiff attorneys – namely, the attorney chooses to send the client to physicians who will help obtain a larger judgment and proportionately, a bigger attorney fee for themselves, while the client bears the risk of subpar medical care and the lifelong complications therefrom. In addition, it creates an overly cozy and confidential referral network between attorneys and their favorite referral doctors. The result is an overwhelming bias toward the plaintiff (and her attorney) in opinion testimony, the depth of which the defendant is not permitted explore or expose to the jury.

The cottage industry of lawyer referrals also seems to alter normal market forces. Traditionally, consumers want to pay less for goods and services, and they will seek out the best value for their dollar. In litigation cases, the cottage network between attorneys and doctors allows medical providers to charge drastically more than a market rate for care, knowing all the while they will dramatically cut the bills once the case is resolved. Some even refuse to accept health insurance to ensure the bills remain owing! In all, the plaintiff’s normal incentives to seek the lowest price for the best service in the medical market is upended. Many plaintiffs now seek (with the advice of counsel) more expensive and societally wasteful care from a litigation doctor.

Our own survey of recent large verdicts (exceeding $1,000,000) revealed an alarming trend. Nearly all large verdicts were comprised of 80% non-economic (pain and suffering) damages. In our recent trials, we’ve noticed a prevalence of the “per diem” arguments to drive up non-economic damages awards. The argument asks jurors to award some amount of money per hour for every waking hour of the day, for the rest of the plaintiff’s life. For example, $10/hr for 16 waking hours a day, for 35 years is a little more than $2 Non-economicmillion.damages awards, regardless of their size, are troubling because it is the only element of damages without real, tangible evidence. There is no limit to what the jury can award, and no guidelines for what they can or cannot consider in awarding damages. In theory, it focuses on the plaintiff’s pain and suffering, which by its very nature, is personal to the plaintiff and cannot be felt by the jurors. Awarding pain and suffering in any amount essentially requires jurors to place themselves in the shoes of the plaintiff, which is ordinarily forbidden by the “Golden WeRule.”also believe the compensatory element of non-economic damages has been largely replaced by a more punitive mindset. Jurors who sympathize with the plaintiff (not a legal basis for an award of damages) or dislike the defendant or their counsel, take the opportunity to award substantial non-economic damages for which there are no real guidelines, transforming them from compensatory, into effectively punitive damages or an excessive fine/penalty because of their size. Certainly, that is not the goal of our tort system of Caps“compensation.”oneconomic damages were previously implemented and swiftly determined to be unconstitutional because, among other reasons, it deprived plaintiffs of the right to access Florida’s courts without a reasonable alternative remedy, and there was no overpowering public necessity shown. Presently, there are only eight states with non-economic damages caps in place. Certainly, the time to discuss non-economic damages reforms has returned in the midst of the current litigation and insurance climate in Florida.

FTA Members Convene for Regional Events

FTA’s Technology & Maintenance Council (TMC) organized a Lunch & Learn in April, which was hosted and sponsored by Kenworth of Jacksonville. The event included a tour of Kenworth’s beautiful new facility, as well as a presentation on fifth wheel maintenance by Bert Ellis of Fontaine Fifth Wheel. It was an opportunity for TMC members to learn maintenance best practices and connect with other professionals from multiple sectors of the trucking industry. In June, FTA held another Lunch & Learn in Jacksonville focused on the importance of advocacy and how FTA works to improve the trucking and transportation industry. Sponsored by Meritor, the event included a delicious lunch at Maggiano’s Little Italy and a presentation on FTA’s priorities as we approach the 2022 elections and 2023 legislative session.

More than 70 current and prospective FTA members gathered in Winter Garden in March for our first FTA Lunch & Learn of the year! Hosted and sponsored by Thermo King of the Southeast, the event included lunch, networking, a facility tour, and a presentation on driver recruitment and retention strategies by Marilyn Surber, a Transportation Advisor at Tenstreet.

16 | SUMMER 2022 FLORIDA TRUCK NEWS

FTA recently began hosting regional events around Florida to provide more networking and professional development opportunities for members beyond the Association’s major conferences. Stay tuned for future regional event announcements – chances are we’ll be coming to a city near you!

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5. Diminished Value – A heavy truck might not be worth as much after an accident as before the accident ‘Diminution of value’ is a valid legal claim in many US states. Before finalizing a settlement with an adverse insurance Continued 20

18 | SUMMER 2022 FLORIDA TRUCK NEWS

By EckertKelsea

6. Delays in Repairs – The length of time to fix equipment has increased significantly due to lack of parts, lack of repair personnel, and delays in claims processing by adverse insurance companies (of the at-fault driver). When dealing with an insurance claim, proactively keep a timeline of everything your business does, from the moment of an accident until the equipment is rolling again. These dates and details will become very important later to demonstrate how your business mitigated its damages and kept the lost income to a minimum. Innocent parties can’t just wait around hoping at-fault drivers will take care of everything. Instead, if you want full reimbursement from the at-fault party, you must make valid attempts to lessen business losses, like renting other equipment to get back on the road. Of course, there are many reasons why compatible equipment can’t be rented. For example, Ryder or Penske are unlikely to have a car hauler available to rent. To document the efforts, you should email the rental companies and ask them. Their email response stating they do not rent such equipment will be helpful in proving mitigation attempts.

8.Increased Equipment Valuation –Prices of new and used equipment have skyrocketed in the last few years

10. Uninsured Motorist/Underinsured Motorist Coverage – A surprising number of automobiles on the road have no liability insurance. Many have only the minimum state requirements Check with your insurance agent and verify your policy has UM/UIM coverage for both property damage and bodily injur y. The cost of the additional

Top 10 Tips for ClaimsInsuranceRecovery

9.Proper Scheduling and Coverage –Oopsie! You don’t want to be the one to say, “We forgot to put that latest tractor on the polic y, and it’s the one that got into the accident.” Ensure all company equipment is listed and all new drivers are added immediately. Check with your insurance agent to see if you have automatic coverage for a period of time when purchasing new equipment Larger companies should have frequent double -checks done by management Make sure new drivers fit your insurance company’s guidelines for new drivers If they don’t, a claim regarding one of these drivers could be denied.

insurance might be very inexpensive compared to the broad coverage provided if hit by an uninsured driver.

7. To report or not report? – That is the question…for your insurance agent. No business wants to have high insurance losses. Before the inevitable claim happens, discuss the steps of the claim process with your insurance agent. Are you required to notify your insurance company after each and ever y claim? What if the claim is less than the business’ retention or deductible? Will reporting a claim label your business as higher risk and thus increase the premiums? Get a clear understanding of the role your agent will play with each claim.

you know how important it is to protect your company’s bottom line. Fleet damage and insurance claims put that bottom line at risk. After an accident, recovering the most amount of money possible requires active and detailed claim management. Years ago, recovering money via insurance subrogation was often an afterthought because of the extra work involved. Even when traffic accidents were the other drivers’ fault, many motor carriers and insurance companies paid for their own repairs and wrote off the losses. With today’s shrinking profit margins, trucking companies need to pursue subrogation and get reimbursed by the at-fault parties and their insurance companies.

Do you remember Dave Letterman’s nightly Top 10 List? It was a countdown from 10 to 1 on all types of fun topics. Here’s a Top 10 Claims Recovery List to improve your processes and help your business find lost money.

If your refrigerated trailer is totaled in an accident, would your insurance polic y cover a replacement at today’s prices? Make sure the valuation of your equipment is up to date and on file with your insurance company. Create a calendar reminder to update valuation with your agent every year.

inIfoccasionally.roaddriverssafestsometheirnoThroughfaultofown,ofthetruckonthegethityou’refleetmanagement,

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1.Don’t forget your fleet’s owneroperators and company drivers! – Tell your owner-operators to pursue their downtime loss and other expenses from the at-fault party. Many adverse insurance companies and self-insured companies say they 2/21/22 2:03 PM

2.Prove it! – Every case has two steps: proving liability and proving damages. You might have a claim with a million dollars in losses, but if you can’t prove the other side is at fault, you get nothing. When you have a clear case with sizeable losses and the other side continues to deny the claim, consider litigation. Some attorneys handle these matters on a contingency fee basis. Some up-front money might be required for cour t costs, but the investment might be well worth it.

4. Speed it up! – The longer it takes to make a claim, the more likely you’re not going to get paid. Submit claims to the adverse insurance company ASAP. Insurance adjusters have piles of claims, so be the squeaky wheel that keeps your claims at the top of their piles. Remember, ever y claim has a statute of limitation. Some states and municipalities have very shor t timeframes in which to file a claim. If a claim is not filed within the statute of limitation, all rights may be lost.

Continued from Page 18 Top 10 Tips for Recovery of Insurance Claims Largest Towing, Recovery, and Specialized Transportation Fleet in the Southeast United States TOWING • RECOVERY • WWW.GUARDIANFLEETSERVICE.COMTRANSPORTATION•866-475-9001 FTA GFS Half Page Ad 2022 B.indd 1

And the number one tip to saving money on insurance claims is…

Kelsea Eckert is an attorney at Eckert & Associates, P.A., an FTA member company.

don’t have to pay downtime, which might not be true. Don’t take no for an answer! Any company drivers with personal injuries and medical bills should be encouraged to pursue the at-fault driver. Providing guidance for your drivers to pursue their downtime losses, personal injuries, and out-of-pocket expenses gives you an opportunity to help your team. Good owner-operators and company drivers are especially hard to find these days, so work hard to keep the ones you have. Establish a protocol that points them in the right direction when an accident occurs. Everyone benefits when your drivers are made whole, and equipment is back on the road again as quickly as possible.

3. Review your claims submission process – Are claim documents being sent to the adverse insurance company properly? Proof should be sent in a cohesive package rather than piecemealed. The goal of submitting a claim should be to give all supporting evidence to the adverse at once. If multiple documents are sent over multiple emails over multiple weeks, the claim may be difficult to review. Make it easy on the adjuster to approve your claim and send you a check.

20 adjuster and signing a release, get an updated valuation of the repaired equipment from an expert. Demand that the insurance pay the difference of the pre- and post-accident values.

Summary In summary, prepare for the unexpected. Stay organized and one step ahead of your insurance claims. Your company, your company drivers, and owner-operators will thank you. With each claim, the quicker you prove fault and prove damages, the quicker you get paid. It’s a great feeling to get equipment back on the road with the accident in your rearview mirror. .

What about claims recently closed with no reimbursement? Did your claims department close some files with subrogation potential? Consider hiring a law firm or other business to review closed claims. If handled on a contingency fee basis, those cases can be sources of found money at no additional cost to your business.

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22 | SUMMER 2022 FLORIDA TRUCK NEWS

MOVES AND Update on people and places in FTA membership

The following professional drivers were recently inducted into Carroll Fulmer Logistics Corporation’s Million Mile Club for their commitment to safe Safe Miles: Clarence Nowell Maurice Yee Paul Robinson Ringvelski Combee Harris (Tony) Segre Million Safe Miles: Lonnie Oldham

• Berrisford

2

Kottke Trucking, Inc. announced the promotion of Zach Little to Chief Operating Officer (COO). Little has most recently been serving as the company’s Vice President of Operations.

Mike Cobb

• Jason Maddox – Accident-Free 1,082,347 miles • Justin May – Incident-Free 1,077,835 miles • Clarence Ruffin – Incident-Free 1,051,751 miles • Eduardo Werneck – Accident-Free 1,111,765 miles

driving:1Million

NEWS

PrePass Safety Alliance also recently announced the acquisition of CVO Holding Company LLC (CVO). From the earliest use of RFID technology to facilitate weigh station bypassing, to the latest developments in connected commercial motor vehicle and electronic toll payment systems, CVO provides best-in-class technology solutions to the trucking industry.

Landstar System, Inc. was named for the first time to the Fortune 500 list of America’s largest corporations by revenue. With revenue of approximately $6.5 billion in fiscal year 2021, an annual record for the company, Landstar debuted at number 491 on the list.

Four Star Freightliner, Inc. honored the legacy of Zachary Sizemore by awarding six college scholarships in his name this year. Sizemore worked in the accounting department at the Dothan, Ala. location of Four Star Freightliner. He lost his battle with cancer in 2016 at the age of 32. A total of 24 Zachary Sizemore Memorial Scholarships have been awarded since 2017.

• Joseph

• Ian West • Wayne

Congratulations to Sharon Harris, who is the first female driver in Carroll Fulmer’s history to be inducted into the Million Mile Club! “Carroll Fulmer has been a blessing to me,” said Harris. “It’s not just a trucking company; we are a family.”Professional truck drivers recently reached a new milestone of support for PrePass. Over 100,000 fleets representing more than 700,000 trucks chose to support PrePass Safety Alliance, the nonprofit public/private partnership that provides PrePass weigh station bypass and other truck safety and efficiency services. These motor carriers earn the opportunity to participate in PrePass and bypass weigh stations by maintaining current credentials and qualifying safety scores, making highways safer for all motorists.

Mike Cobb received the Jeffrey C. Crowe-Robert E. Zonneville Lifetime Achievement Award. The honor, first presented by Landstar 28 years ago, is awarded to an employee who not only succeeds at Landstar but also helps others succeed along the way.

• Sharon

Total Distribution, Inc. (TDI) has been named to Transport Topics’ Top Dry Storage and Refrigerated Warehousing lists for 2022 for providing expert industry services in North America ranked based on annual gross revenue.

Southeast Transportation Systems recently recognized the following millionmile winners: • Anthony Anderson –Accident-Free 1,148,669 miles

• Marty Bruce – Incident-Free 1,075,321 miles • Terry Graham – Accident-Free 1,069,196 miles • Dennis Heiney Jr – Accident-Free 1,117,715 miles

Florida Rock & Tank Lines is participating in the Department of Defense Skillbridge program as a certified Department of Labor Apprenticeship provider. Rob Sandlin, Florida Rock and Tank Lines President and CEO said, “We are excited about the opportunity to hire and train military service members who are transitioning to civilian life. Skillbridge participation will allow us the opportunity to engage military personnel that have an interest in gaining their CDL and making a Sharon Harris

Tra Williams, Owner and President of FleetForce Truck Driving School, was recently appointed by Gov. Ron DeSantis to the Florida Department of Education’s Commission for Independent Education.

Richardo Kerr of Exxact Transport recently reached 1 Million Safe Miles.

J.W. Taylor and Kristen Johnson of Taylor Johnson PL were recently recognized by Super Lawyers magazine. Taylor was included in the 2022 Florida Super Lawyers List, and Johnson was included in the 2022 Florida Rising Star List. Super Lawyers is defined as a research-driven, peer-influenced rating service of outstanding lawyers who have attained a high degree of peer recognition and professional achievement.

TransportGroendykehas promoted Aaron Harmon gained2017GroendykestartedPresident.ExecutivetoViceAaronatinandhas leadership experience in many facets of the business over the past five years, including safety, training, and the operation of human resources. David Snapp, a 36-year employee and longtime member of senior leadership at Groendyke, has been named Chairman of the Board for Oklahoma Trucking Association (OTA). Nichole Mobley, owner of T&N Xpress, appointedrecentlywasto the North CitizensOrganization’sPlanningTransportationFloridaAdvisory Committee. T&N Xpress is a local trucking company that educates the next generation of truckers. As a representative of Duval County, Mobley will assist in planning transportation matters. Quality Carriers (QC) the2021announcedrecentlytheirDriverofYear, StonekingAlvinfrom Terminal 159 in Coraopolis, Pa. Alvin has been with QC for 10 years and has more than 3 million accident-free miles. Stoneking is described as knowledgeable, professional, hard-working and selfless by hisOnpeers.May12,

The caller mentioned she was traveling in the opposite direction when she noticed the small child on the road. She said, “I was about to get out of my car to flag down the truck driver. Before I knew it, he got out of the truck and grabbed the child and brought him across the street to his parents.”

TransportOakley was

NorthCarriers’TankNationalClassMillioninGrandwithhonoredtheAwardthe40-90MilesintheTruck2021American Safety Contest.

Richardo Kerr Ricky Kerr

FLORIDA TRUCK NEWS SUMMER 2022 | 23 career as a professional tank truck driver in a local environment.”

A professional driver with Ryder for 6 years, Alford almost got away with this act of bravery in total silence had it not been for a vigilant and caring private citizen who called the Ryder customer’s regional distribution center to acknowledge the heroic act of kindness.

Ricky Kerr of UPS was inducted into the Circle of Honor for having 25 years of safe driving. Craig Roy achieved 24 years safe driving. Bryan Pickett retired with 44 years of service and 28 years of safe driving.

Ervin Alford, a Ryder driver was making deliveries in Estherwood, La., Nichole Mobley Aaron Harmon Tommy Oakley Ervin Alford Alvin Stoneking when he therunninginwasrealizedHefronttheoddsomethingsawonroadinofhim.quicklyitatoddleradiaperonhighwaytoward oncoming cars. Without hesitation, Ervin calmly stopped his tractor/trailer crosswise on FM 744 to block both lanes of traffic, stepped off his rig, and collected the child. He walked the child back to the distressed parents.

Fleet Advantage – a leading innovator in truck fleet business analytics, equipment financing, and life cycle cost management (LCCM) – announced Jackie Jacobs, CLFP, Senior Fleet Transaction Analyst and Project Manager, has been named a NextGen Leader for Monitor magazine’s 3rd Annual NextGen Leaders Award. This award highlights 40 up-and-coming leaders under 40 in the equipment finance industry.

Fleet Advantage Vice President, Marketing and Business Development, Katerina Jones, has been named one of three Trailblazer Top Brand Innovators by the Transportation Marketing and Sales Association.

Global risk and insurance brokerage Hub International Florida is helping implement driver finishing programs, which can reduce accident rates, improve fleet safety, and aid in recruitment and retention. Driver finishing programs can make inexperienced drivers a better risk and make an organization more attractive to underwriters. These programs can vary from a mentorship situation to a full-fledged educational experience requiring as many as 200 hours behind the wheel with a trainer.

Florida Drivers Win Large Team Trophy at 2022 Safety Drive for a Cure SAVE ASK ABOUT THE FTA MEMBER DISCOUNT Weigh station bypassing and toll payment solutions that save you time, money, and fuel. Trust PrePass — Over 700,000 truckers already have. prepass.com/FL 866.228.1424

24 | SUMMER 2022 FLORIDA TRUCK NEWS

Florida’s professional drivers took home the John Lex Memorial Trophy, the top award in the Large Team category, at the 2022 Safety Drive for a Cure. John Lex, who recently passed away in January, was an America’s Road Team Captain; former Florida Road Team member; and professional driver for Walmart TheTransportation.SafetyDrive for a Cure – which was held in Ellenwood, Ga. in March this year – is a truck driving skills competition that supports the Georgia chapter of the Pediatric Brain Tumor Foundation. It started out as a company event for the drivers of the YRCW family of companies – and now, it is open to drivers from all Congratulations,companies. Florida drivers!

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