ARLINGTON, Va., May 19, 2021 /PRNewswire/ — Today, by a unanimous and bipartisan vote of 31-0, the Texas Senate passed House Bill 19—a comprehensive reform bill to reduce frivolous and abusive lawsuits targeting commercial motor vehicles. The bill’s passage earned widespread praise from the trucking industry and a broad coalition of supporters from every corner of the Texas economy, who say reforms like HB 19 are needed to prevent a growing trend of lawsuit abuse that has sent insurance levels skyrocketing to unsustainable levels, putting enormous strain on the supply chain.

“Despite the plaintiff bar’s best efforts to lie about and distort the contents of this bill, the Texas Senate took a resoundingly bipartisan vote today to curb lawsuit abuse and restore balance and fairness to the civil justice system,” said American Trucking Associations President and CEO Chris Spear. “Texas has joined the growing ranks of states across the country pursuing common-sense measures to ensure the plaintiffs’ bar can’t keep perverting civil justice into a profit center to line their own pockets.”

Among other provisions, HB 19 ensures juries are presented with evidence that is directly relevant to causation and injuries in a highway accident and ensures the case is focused on the events at issue—not on extraneous allegations outside the scope of the underlying accident. The trucking industry says targeted reforms like these will help remove the incentives driving abusive lawsuits and fueling a spike in nuclear verdicts.

“With the unanimous passage of House Bill 19, the trial process will continue to ensure accident victims are compensated when wrongfully injured, while also protecting businesses across the state from biased and unfair courtroom tactics,” said Texas Trucking Association President and CEO John Esparza. “Thank you to Lt. Governor Dan Patrick for recognizing the serious threat abusive lawsuits have on the Texas economy and naming this issue as one of his priority items this legislative session.”

The industry is encouraging the Texas House of Representatives to concur with the Senate-backed bill, so that the legislation can be sent to Governor Greg Abbott and signed into law.

Texas becomes the latest state in recent months to pass lawsuit abuse reforms, including Montana, West Virginia, Louisiana and Missouri. In neighboring Louisiana, rampant lawsuit abuse attracted the attention of the Federal Bureau of Investigation, as organized crime rings staged dozens of accidents with unwitting tractor-trailers as a pretext to sue them in court. Last November, personal injury attorney Daniel Patrick Keating was indicted for his leadership role in the lawsuit racket. The Louisiana State Legislature is now considering legislation to criminalize staged accidents.

American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight. Follow ATA on Twitter, Facebook, or at Trucking Moves America Forward.

SOURCE American Trucking Associations

An overhaul to injury liability statute for truck operations in Texas is nearing passage at the statehouse.

The Senate voted 30-1 this week to advance an amended House bill that is intended to “ensure a level playing field” in commercial liability cases.

Sponsored by Rep. Jeff Leach, R-Plano, HB19 would protect trucking companies from what are described as frivolous lawsuits in instances where the driver was not negligent.

Additionally, a court would be required to dismiss a lawsuit against a truck operator if the injury or death of another person was caused while the operator was carrying out their duties “within the scope of employment.”

Critics concerned about injury liability bill

Opponents of the measure say the injury liability bill would overhaul the state’s civil justice system for the benefit of one industry.

They add that changes in liability law would result in vehicle and insurance rates increasing for Texas residents. They cite figures that show the Lone Star State leads the nation in truck wreck injuries and deaths.

Speaking late last month on the House floor, Rep. John Turner, D-Dallas, voiced concern about limited liability for companies that would result from the rule change.

Countering criticism about limited liability

Advocates say that limited liability would not result in a free pass for trucking companies. Leach has continued to assure lawmakers that plaintiffs would not be prevented from pursuing justice.

He has added that cases going to trial would have two phases. The first phase would focus solely on the incident under the negligence standard. A second phase would cover expanded legal issues resulting from the incident.

Essentially, the truck operator must be proven liable before their employer could be taken to court.

“It does not limit in any way the ability of Texans to hold companies liable and responsible,” Leach said.

Protection from ‘frivolous lawsuits’

Speaking on the Senate floor this week, Sen. Larry Taylor, R-Friendswood, said the bill is focused on protecting truck operations of all sizes from frivolous lawsuits. In addition, he said it would ensure injured people can pursue damages through the court system.

“House Bill 19 is designed to protect the rights of Texans who are truly injured in a commercial vehicle accident while shutting down the abusive practices some plaintiffs lawyers use to manipulate evidence at trial in cases where a commercial vehicle owner was not at fault or the plaintiff was not injured,” Turner said.

He added that HB19 “will help ensure the rules of the road for highway accident cases are applied uniformly and fairly in all Texas courtrooms.”

Truckers support liability reform

Truckers in the state say the legislation would protect the industry from “abusive commercial vehicle lawsuits.” They add that the bill is not just a trucking bill. Ride-sharing services like Uber and Lyft and any other vehicle being used for commercial purposes also are covered.

The bill is backed by groups that include the Texas Trucking Association, the Keep Texas Trucking Coalition, and the Owner-Operator Independent Drivers Association.

“HB19 proves that Texas can protect the rights of victims who are injured by the negligence of others on our roadways without letting abusive lawsuits decimate small businesses and the commercial vehicle network we rely on every day,” reads a statement from the Keep Texas Trucking Coalition.

Texas Trucking Association president and CEO John Esparza added that with the bill’s passage “the trial process will continue to ensure accident victims are compensated when wrongfully injured, while also protecting businesses across the state from biased and unfair courtroom tactics.”

The measure has moved back to the House for approval of changes. If approved there, it would head to Gov. Greg Abbott’s desk. If not approved, a conference committee made up of select members from both chambers would meet to work out differences before the bill heads to the governor. LL

https://www.ttnews.com/articles/texas-senate-committee-approves-legislation-curb-lawsuit-abuse

The Texas Senate Transportation Committee has unanimously approved a House bill that would help curb the growing trend of lawsuit abuse targeting commercial vehicles in Texas.

Texas HB19, passed by the state House on April 30, will now be forwarded to the full Senate for a vote likely later this month.

The legislation has earned widespread support from the trucking industry and small businesses across the state, according to testimony before the Senate transportation committee on May 12.

Republican Sen. Larry Taylor, who introduced the Senate version of the bill, told the committee that the state’s 65,000 trucking companies are essential to the state’s economy.

“These Texas companies are heavily regulated by the state and federal government and are experiencing a sharp increase in the number of collision lawsuits that have been filed against them,” Taylor said. “As a result commercial insurance rates are skyrocketing, increasing about 10% in 2018, and another 30% in 2019.”

Lee Parsley, general counsel of Texans For Lawsuit Reform, said many of the costly lawsuits being waged against truckers are unrelated to accident severity.

“The methodology used to pursue these lawsuits is taught in seminars in Texas, and we think it’s fundamentally unfair to defendants in the lawsuits,” Parsley told the committee. “This bill is not radical in any sense. It simply tries to apply some elements of existing Texas law across the state to make sure that all of these cases are applied to the same rules everywhere in Texas.”

The bill, if passed by the Senate in its current form, includes a provision that would allow properly authenticated photographs or videos of a vehicle or object involved in a collision to be admitted into evidence. Presently, judges in Texas have discretion on whether to allow photo or video evidence, and in some cases are known to leave out photo evidence because it may be too gruesome or deemed not relevant.

Another provision in HB19 would “bifurcate” a trial, only allowing allegations of unsafe motor carrier safety practices during its second phase. The first phase of a trial would allow evidence on who is at fault in a crash.

It also ensures juries are presented with evidence that is directly relevant to causation and injuries in a highway accident and ensures the case is focused on the events at issue — not on extraneous allegations outside the scope of the underlying accident.

John Mondics, president of Mondics Insurance Group Inc., said that the rise in lawsuits against truckers has resulted in Texas becoming a state in which insurance underwriters do not want to do business.

“We’re seeing across the board small trucking companies close their doors every day,” Mondics said. “We average one or two clients a week that are no longer in business due to claims that underwriters are paying.”

“I am frightened and alarmed about the commercial litigation environment in Texas,” said LouAnn Wagner, CEO at San Antonio-based Texas Auto Carriers Inc. “In the last 10 year my company has experienced year-over-year double digit insurance premiums, not because we have high claims experience — we don’t — but because we’re in an industry that has been unfairly targeted by excessive and abuse litigation.”

“As it stands today, we have to go into a courtroom with our hands tied behind our backs,” said Adam Blanchard, president of San Antonio-based Double Diamond Transport.

https://www.dallasnews.com/news/2021/04/29/bill-limiting-liability-for-trucking-companies-passes-texas-house/

The legislation aims to protect trucking companies from excessive litigation, but opponents say it could let them off the hook for accidents when they’re at fault.

A bill that would make it harder to successfully sue commercial trucking companies is moving forward after a series of postponements on the House floor.

According to the bill’s author, Plano Republican Jeff Leach, the legislation would create a fair framework that ensures victims in collisions involving commercial vehicles can have their day in court, while also protecting commercial motor vehicle operators from excessive lawsuits. On third reading Friday, the legislation, House Bill 19, passed 81-49.

“With passage of this bill, we will see commercial vehicle insurance rates fall in the state,” Leach promised during testimony to the House floor on Thursday.

On Thursday evening, after passage on the bill’s second reading, the Keep Texas Trucking Coalition praised the legislation for promoting business across the state. According to a statement the coalition released Thursday, more than 550 businesses have supported his bill as written.

“The Texas House has taken an important step to ensure our legal system provides appropriate remedies for injured Texans without allowing rampant lawsuit abuse to wreak havoc on small businesses,” the statement read.

But opponents of the bill argue that Texas roads remain dangerous and HB 19 would potentially let commercial operations off the hook.

“Litigation is consumers’ last resort, but it’s currently our most important deterrent to deadly negligence and wrongdoing by commercial vehicle companies,” said Bay Scoggin, director of Texas Public Interest Research Group, who helped organize a Safe Streets Webinar for opponents of the bill.

According to the National Highway Traffic Safety Administration, the number of truck crashes in Texas increased 27 percent from 2016 to 2019. The state had more truck wreck fatalities than any other in 2019.

But, according to the bill analysis, the number of motor vehicle lawsuits have increased by 118% since 2011 while the number of injuries involving commercial vehicles has only increased by a small percentage.

“In many instances, the person being sued is not at fault, yet must spend increasing amounts of money in court and to purchase insurance coverage,” the analysis reads.

Texans for Lawsuit Reform is another strong supporter of the HB 19. On Monday, the Austin-based organization, which controls a powerful Political Action Committee, released a survey of South Texas-based Democratic primary voters on their views of lawsuits against trucking companies.

“Democratic Primary voters have spoken, overwhelmingly supporting and trusting Texas small businesses over personal injury trial lawyers, recognizing the value job creators and commercial vehicles provide to our state, and voting accordingly at the ballot box,” said TLR Executive Director Mary Tipps in a statement about HB 19 and the survey results.

Adrian Shelley, the director of Public Citizen Texas, leads one of several organizations who argue that HB 19 is a piece of legislation that would put the welfare of business above the safety of citizens.

“This bill turns its back on the hundreds of Texas families who experience tragedy in commercial truck accidents each year,” Shelley said in a statement. “It limits corporate liability and throws roadblocks into the recovery process for grieving families. Texas has a series truck crash problem, but HB 19 is far from a solution.”

Laredo Democrat Richard Peña Raymond, who questioned Leach about HB 19 on Thursday, said his district has a strong interest in protecting the trucking industry due to its proximity to Mexico. According to the Texas Trucking Association, one in 16 Texans are employed by the trucking industry and 85% of trade between Texas and Mexico is handled by trucks.

But even advocates of the legislation had reservations about the scope of reform in the bill’s current state. A series of amendments added to the bill aim to clarify some of the measures, and advocacy groups suggest there is more work to be done.

“While we are concerned about the broadness of some of the provisions in HB 19, we look forward to working with the Texas Senate to ensure the bill is tightly crafted and focused,” the Keep Texas Trucking Coalition said in its statement. “The goal of HB 19 remains now as it has always been — to ensure accident victims can be compensated fairly in our courts, and that small businesses can continue to safely operate commercial vehicles without being put out of business by frivolous and abusive litigation.”

Pursuit of an overhaul to injury liability statute for truck operations in Texas is halfway through the statehouse.

House lawmakers voted last week to advance a bill that is intended to “ensure a level playing field” for plaintiffs and defendants in commercial liability cases.

Sponsored by Rep. Jeff Leach, R-Plano, HB19 would protect trucking companies from what are described as frivolous lawsuits in instances where the driver was not negligent.

Additionally, a court would be required to dismiss a lawsuit against a truck operator if the injury or death of another person was caused while the operator was carrying out their duties “within the scope of employment.”

Critics voice concerns

Opponents of the measure say it would result in vehicle and insurance rates increasing for Texas residents. They cite figures that show the Lone Star State leads the nation in truck wreck injuries and deaths.

Speaking on the House floor, Rep. John Turner, D-Dallas, voiced concern about limited liability for companies that would result from the rule change.

Countering concern about limited liability

Leach responded that limited liability would not result in a free pass for trucking companies. He assured that plaintiffs would not be prevented from pursuing justice.

He added that cases going to trial would have two phases. The first phase would focus solely on the incident under the negligence standard. A second phase would cover expanded legal issues resulting from the incident.

“It does not limit in any way the ability of Texans to hold companies liable and responsible,” Leach said.

‘Common-sense public policy’

Leach said his bill is focused on protecting truck operations of all sizes from frivolous lawsuits. In addition, he said it would ensure injured people can pursue damages through the court system.

“This bill represents strong, sensible and commonsense public policy,” he said.

“This bill is meant to address a very real and present threat to our state’s economy. The legislature has an opportunity with House Bill 19 to address it in a real and meaningful way.”

“At its core, this bill is about justice and fairness in our courts.”

He said the bill would ensure that negligent drivers and the companies that employ them will be held liable for accidents that they cause.

“At the same time, this bill installs a legal and procedural framework that will protect Texas businesses of all sizes from abuses in our justice system.”

Truckers support injury liability changes

Truckers in the state say the legislation would protect the industry from “abusive commercial vehicle lawsuits.”

The Texas Trucking Association adds that the bill is not just a trucking bill.

It’s not only trucking companies that are hurting from abusive lawsuits, but any company that operates a commercial motor vehicle,” reads a statement from the Texas Trucking Association following House passage of HB19. “For far too long, some trial attorneys have preyed upon these businesses and today the Legislature stood up and said it’s time for change.” LL

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