5 minute read

FTA Law Firm Members Step Up to Fight 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 Nassau County.

Advertisement

Florida is even on the American Tort Reform Foundation’s “Judicial Hellholes” watch list.

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.

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

“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.

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

“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.

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.

“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.

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.

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.

“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.”

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.”

“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.”

This article is from: