One lawsuit could put a trucking company out of business. That is why lawsuit abuse reform is vital to the industry, and a few states are pursuing legislation to reform tort laws affecting truck drivers.
In Georgia, Gov. Brian Kemp’s overhaul effort brings two bills (SB68 and SB69) to protect small businesses from lawsuits and help lower rising insurance rates. In 2022 alone, Georgia’s tort costs reached nearly $20 billion.
The bill ensures that plaintiffs can only claim the actual amount paid for medical bills, preventing inflated costs or phantom damages that drive up insurance premiums and prices, guaranteeing fair compensation while protecting businesses and consumers.
Gov. Kemp, during a press conference, emphasized its importance for rising insurance costs.
“Small business owners have reported that insurance premiums have increased anywhere from 30% to 100% over the last few years, costing them thousands — if not millions — just to maintain basic coverage," he said. "Some insurance companies have pulled out of the state, leaving businesses with fewer options, while others are spending massive amounts to defend against excessive lawsuits. Ultimately, these rising costs are being passed on to consumers."
To limit excessive pain and suffering awards, the bill prohibits attorneys from using unrelated comparisons, such as the cost of fighter jets or celebrity salaries, to influence jury decisions. It also looks at transparency in third-party litigation financing. It bans foreign adversaries from exploiting Georgia’s legal system, protects plaintiffs from predatory lenders and ensures all parties, including courts and opposing litigants, have visibility into funding arrangements.
Defendants can now present evidence if a plaintiff was not wearing a seatbelt during an accident, helping to mitigate damages when injuries were worsened by the plaintiff’s failure to use the essential safety feature.
This is also similar to Indiana’s “seatbelt gag rule,” allowing juries to consider its usage in accident lawsuits, which was passed last year. Legislators introduced two new bills (SB37 and SB490) this year, which include requiring a bifurcated trial process, preventing trucking companies from being sued unless the driver is first found liable. If the driver is at fault, the second phase of the trial allows broader evidence on the company’s practices, ensuring a fairer process for trucking businesses.
It also includes a proposition to cap noneconomic damages in commercial vehicle-related lawsuits at $1 million, with both bills currently under review.
Gary Langston, president, Indiana Motor Truck Association, noted that the only roadblock to fixing abuse and unfair lawsuits has been the plaintiff bar and the legislators they are able to influence.
“It’s important to get legislators other than just those who serve on the judiciary committees involved in understanding the reptile theory tactics that trial lawyers use to divert a jury’s attention from the facts of the trial," Langston said. “Build a strong coalition, and use it to help the legislature understand the importance of the issue.”
In Arkansas, the Senate Judiciary Committee voted to advance a tort reform bill (HB1204) to limit “phantom damages.” Previously, plaintiffs could claim the full amount billed by medical providers, even if insurance companies negotiated a lower payment. This practice led to inflated recoveries in lawsuits.
A U.S. Chamber study shows that the average Arkansas household pays $2,942 in tort costs.
In 2023, Iowa passed legislation that put a $5 million cap on noneconomic damages.
Talking about the association’s campaign, Iowa Motor Truck Association President and CEO Brenda Neville, stated it’s essential to learn that many state legislatures include trial lawyer legislators from both parties, making lawsuit abuse reform efforts extremely difficult.
“We are proud of the industry’s commitment to safety and will always take responsibility if we are at fault in an accident. However, these legislative initiatives are needed to create fairness and put the trial bar on notice,” Neville said. “We have to be relentless in telling this story, and every state association has a great story to tell, and they need to continue to do that regardless of whether they are trying to move legislation.”
