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

More Land Line coverage of news from Texas.

TXTA and SMA Members: It is with a heavy heart that I share with you all that TXTA and SMA member and good friend Chuck Dicker has passed away.    Chuck was very active in the associations and served as vice president of Mondics Insurance Group since 1993. Though some of you may not know that Chuck was also a senior vice president at TXTA in the 1980s and early 1990s.    Chuck was a steadfast member, a fixture at SMA and TXTA gatherings, a pillar of our membership committee and a true friend to all.     Originally hailing from Brady, Texas, Chuck was a veteran of the United States Navy and a graduate of Texas State—as well as active with the Texas State alumni association. Please join me as we send prayers for comfort and peace to his family and loved ones during this time.    We will share more details as they become available.  Chuck will be dearly missed.   Sincerely,

John D. Esparaza President & CEO, TXTA Executive Director, SMA

One category of small business that I am fortunate to work with is trucking. As most are small businesses working as contractors and subcontractors for larger freight and logistics companies, I’ve worked with them for 10+ years before the onset of the pandemic and have helped them through several boom and bust cycles. 

Indeed, truck drivers are the unsung heroes of Covid-19. When airlines cancel flights, truckers keep driving. Through the cycle of lockdowns and re-openings, the public should consider drivers essential workers and frontline responders, delivering medical supplies and equipment to hospitals and ensuring that retail shelves remain stocked with food and essential goods.

However, now, nearly one year into the pandemic, I’ve observed the resiliency of this industry, in addition to some changes—some that might linger for years to come.

Healthcare still a priority

The ability to expedite the movement of crucial medical supplies and equipment, especially into regions of high concentrations of Covid-19 cases, will still be a priority. Trucking companies with experience and existing contracts with medical suppliers will certainly succeed.

Let’s not forget about how the vaccine will get distributed. Pfizer understands the need to consider the logistics of distributing the vaccine and intends to use “strategic transportation partners” to ship the vaccine to dosing centers. As other vaccines become approved for use in the U.S., such as that by Moderna, they will need to be distributed strategically and at scale, and again, those carriers with experience in moving critical supplies will receive priority.

E-commerce isn’t enough

While the pandemic accelerated e-commerce — Amazon’s sales were $96 billion for Q3 2020, representing a 37% year-over-year increase — it is a fallacy to assume that all participants in the freight and logistics industry benefited. 

In fact, with an expected boom in-home deliveries, Amazon flooded the market with thousands more drivers in the form of either DSPs (Delivery Service Partners) or Amazon Flex drivers. While Amazon Flex Drivers tend to be individuals simply looking to make extra money delivering packages, DSPs have given real competition to experienced trucking companies.

Specialization can hurt

As some sectors shut down during the pandemic, those trucking companies that served them might not recover for quite some time.

For example, trucking companies that delivered fixtures and equipment for live, in-person events, such as for sports and concerts, might need to wait years for such contracts to return.

If such trucking companies can pivot easily to another sector, they will hopefully be able to survive the pandemic and replace the revenues they’ve lost.

A heavier reliance on apps

Shipper-driver matching apps, such as Uber Freight, Convoy, and Loadshop, have been around for several years. 

However, with the need to pick up extra routes or loads — and with the shipper’s office employees working from home—the reliance on sourcing work via these introduction apps has proved crucial for survival for trucking companies of all sizes.

Further consolidation in the industry

While trucking companies serving healthcare or essential retailers might consider 2020 as their best year yet, others may have had the opposite experience. Some trucking companies might have been able to pivot and find new customers not affected by the pandemic; others not so much. 

Whether it’s via the apps or more communication between entities, another change in this new normal will be deeper relationships among shippers, carriers and third-party logistics providers to enable all parties to work more efficiently within — and better react to — future disruptions.

When you finally do receive the vaccine, whenever that might be in the future, just know that a trucker helped make that happen.

Trucking employment dips for first time since April
The number of payroll jobs in the for-hire trucking industry fell by 2,900 jobs in January, according to preliminary data released Friday by the Department of Labor in its monthly Employment Situation Summary. That’s the first month since April that trucking industry employment fell from the month prior.

The slowdown in hiring among trucking fleets fits into the U.S. economy’s overall trend. Job gains in the broader economy hit a plateau in recent months, and employers overall added just 49,000 jobs in January on a seasonally adjusted basis. 

Since May, for-hire fleets have added back 47,000 jobs, but total industry employment, some 1.475 million jobs in January, was nearly 50,000 jobs shy of the recent high mark from last February – before the economic effects of the COVID-19 pandemic began in earnest in the U.S. 

Likewise, year over year, total employment among for-hire fleets was down 47,300 jobs compared to January 2020 and down nearly 53,000 jobs from the same month in 2019.

Major freight-producing sectors construction and manufacturing also both lost jobs in the month, 3,000 and 10,000, respectively, and the retail trade sector, which has carried much of the economic recovery since last spring, dropped 37,800 jobs. 

The leisure and hospitality sector, one of the hardest hit in the pandemic, lost another 61,000 jobs in January, with more than half coming among restaurants and bars.

The transportation and warehousing sector as a whole dropped 27,800 jobs on a seasonally adjusted basis, though air transportation did show signs of life, adding back nearly 15,000 jobs in the month.

Goodyear invests in self-driving trucking firm TuSimple
Goodyear Ventures, a segment of Goodyear Tire and Rubber Company, announced it has invested in TuSimple, a self-driving truck technology company.

TuSimple operates self-driving trucks out of their facilities in Arizona and Texas in the U.S. The company is developing a commercial-ready Level 4 autonomous driving system.

Last year, Goodyear announced a strategic partnership to provide tires and tire management to TuSimple’s Autonomous Freight Network. Goodyear will conduct wear studies to better predict maintenance, understand tire longevity and reduce the carbon impact of fleets.

TA expands telematics offerings with Spireon trailer telematics
TravelCenters of America is partnering with Spireon to bring installation services for FleetLocate trailer telematics devices to TA Truck Service centers. Truckers can now have new trailer telematics systems installed or have existing ones upgraded at TA Truck Service centers.

Prior to this partnership, Spireon arranged for all installations to take place on-site at a carrier’s location. Now, carriers can also service their trailers while they are on the road.

State trucking associations, other trucking groups urge against liability insurance hike
A coalition of more than 60 trucking-related associations penned a letter this week to the House Committee on Transportation and Infrastructure to discourage members from voting for an increase in the existing minimum liability insurance coverage required for trucking companies.

The coalition of 62 associations includes more than 20 state trucking associations, several agriculture associations and more.

The coalition of 62 associations includes more than 20 state trucking associations, several agriculture associations and more.

“An increase in insurance requirements is wholly unnecessary, would do nothing to improve highway safety, and would have a severe negative impact on truckers, farmers, and manufacturers by significantly increasing their operational costs,” the letter states.

The letter also notes that federal research has demonstrated that an increase is not necessary, citing a study by the John A. Volpe National Transportation Systems Center in 2014, which explained, “The vast majority of CMV-caused crashes have relatively small cost consequences, and the costs are easily covered with the limits of mandatory liability insurance. A small share exceed the mandatory minimum but are often covered by other insurance or assets.”

A liability insurance increase is one of the items some believe could be explored further under the Biden Administration after an exploratory Federal Motor Carrier Safety Administration rule to evaluate the current $750,000 minimum was tabled in 2017.

Labor Dept. proposes delay of independent contractor rule
The Department of Labor is proposing in a Federal Register notice to be published Friday, Feb. 5, to delay the effective date of its final rule to define “independent contractor” under the Fair Labor Standards Act until May 7. The rule’s original effective date was March 8.

The delay follows a memo from the Biden Administration calling for certain proposed regulations to be frozen pending further review.

According to DOL, the delay would give the department’s Wage and Hour Division more time to review and consider the rule.

The rule uses five economic-reality factors to help businesses determine whether a worker is an employee or an independent contractor. Two of those factors – the nature and degree of the worker’s control over the work and the worker’s opportunity for profit or loss – are the two primary factors for determining a worker’s classification and carry greater weight than the other three factors.

The other factors include: the amount of skill required for the work; the degree of permanence of the working relationship between the worker and the potential employer; and whether the work is part of an integrated unit of production.

Averitt employees donate $1M to St. Jude
Truck drivers and other employees of Averitt Express matched their record for its largest-ever contribution, raising $1,000,001 in 2020 that was recently donated to St. Jude Children’s Research Hospital.

It marked the sixth consecutive year Averitt employees have matched or set a record in their donation to St. Jude.

The milestone was fueled by weekly contributions from Averitt employees as part of Averitt Cares for Kids, the company’s charitable employee-giving program. About 96% of Averitt associates participate, giving $1 per week to help St. Jude and other important causes.

Since Averitt Cares for Kids began in 1987, it has contributed close to $12 million overall to numerous charities, including more than $9 million to St. Jude. 

TFI acquiring UPS Freight for $800 million

UPS ( CCJ Top 250, No. 1) is selling its LTL and truckload business, UPS Freight, to TFI International (No. 8) for $800 million, the companies announced Monday morning. The completion of the deal is expected in the second quarter of 2021 and is subject to working capital and other adjustments.

The decision to sell UPS Freight was reached following an evaluation of the UPS portfolio and aligns with the company’s “better not bigger” strategic positioning, UPS said in a press release. The company will still operate more than 27,000 tractor-trailers as part of its parcel delivery service, which it still retains, along with its freight brokerage (Coyote Logistics), its cargo airline and more. 

“We’re excited about the future and the opportunities this creates for both UPS and UPS Freight as part of TFI International Inc.,” said UPS CEO Carol Tomé. “The agreement allows UPS to be even more laser-focused on the core parts of our business that drive the greatest value for our customers.”

Approximately 90% of the acquired business will operate independently within TFI International’s LTL business segment under its new name, “TForce Freight,” while acquired dedicated truckload assets will join TFI’s truckload business segment, TFI said.

UPS and TFI will also enter into an agreement for UPS Freight to continue to utilize UPS’ domestic package network to fulfill shipment for five years.

“We are pleased to announce this highly strategic transaction that will strengthen our service offerings to customers as well as our ongoing relationship with UPS,” said Alain Bédard, Chairman, president and chief executive officer of TFI International. “Our strategy of operating independent business units with a high degree of accountability is well-suited for building on UPS Freight’s strengths and improving margins over time. TForce Freight will continue to serve UPS’ ongoing LTL distribution needs, and UPS will continue to provide freight volumes and other services to TForce Freight after the transaction for a base term of five years. We also look forward to offering expanded strategic network opportunities to UPS in Canada.”

UPS Freight generated approximately $3 billion in revenue in 2020 and was approximately breakeven from an operating income perspective. TFI says it expects to realize significant near- and long-term opportunities to improve TForce Freight’s operating margin.

Jan 04, 2016 | Insurance for Real Estate Agents

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by James Jaillet

Is the current amount of “financial responsibility” — liability insurance, essentially — for carriers too low?

That’s a question the Federal Motor Carrier Safety Administration has been grappling with since an April-issued report by the agency concluded, yes, the amount is insufficient and that many crashes run well above the current $750,000 minimum.

Trucking groups like the American Trucking Associations and the Owner-Operator Independent Drivers Associations, however, contend that just 1 percent of all trucking-related crashes exceed the minimum, therefore making it impractical to impose an increase and the probable burden of increased premiums on motor carriers.

As part of a potential rulemaking to increase the minimum, the agency published Nov. 26 a list of 26 questions it hopes to have answered by carriers – both fleets and owner-operators.

The agency published the questions as an Advanced Notice of Proposed Rulemaking, aimed at gathering industry input on the issue before proceeding with any rulemaking.

Carriers have until Feb. 26 to offer their formal input on the regulations.gov portal (click here to submit your comment), but here are some of the topics and questions the agency is seeking trucking’s input on:

Premiums:

-What are the current rates for carriers currently? And how do they vary based on FMCSA’s safety ratings?

-How much would premiums increase for each 10 percent increase in the liability insurance coverage?

-What percentage of fleets have coverage currently above the current minimums?

Current insurance levels:

-How often do crashes exceed the current minimums? And how often are carriers liable for the costs exceeding those minimums? Do these crashes cause carriers to go bankrupt?

Impacts of increasing insurance coverage:

-Would the effects of an increase be disparate for smaller carriers relative to larger ones?

-Would an increase affect carriers’ ability to obtain insurance?

-Would increasing minimums affect carriers’ investment in safety programs, preventive maintenance or investing in technology?

Timeline:

-What’s a reasonable phase-in period if FMCSA does increase the minimum coverage amounts?

-Should there be a process for updating the minimum in the future using inflation metrics? And how often should it be updated?

Self-insurance:

-Should the agency enhance the requirement for carriers that self-insure to have “adequate safety programs”?

Courtesy of www.ccjdigital.com

Finding that, under New York law, brokers “are charged with knowledge and responsibility to check the public records to confirm any information the broker is conveying to the potential purchasers,” a New York court has held a listing broker (“Listing Broker”) liable for $4,200 to reimburse a homebuyer (“Buyer”) for the costs Buyer expended to hook up a purchased property (“Property”) to the municipal sewer line.

In early 2013, Buyer began looking for a home to purchase. He was only interested in houses with connections to the municipal sewer system. His real estate broker showed him the Property, which Listing Broker, based upon information supplied by the Property’s seller (“Seller”), had listed as having “city sewers.” Apparently relying exclusively on the listing information regarding the Property’s sewage system, Buyer purchased the home.

After closing on the Property, Buyer discovered that the Property was not, in fact, connected to the city sewers, but rather had a septic tank system. Buyer spent $4,200 to connect the Property to the city sewer line located beneath the street in front of the Property, and then filed a small claims action against Listing Broker for reimbursement of his costs. In his suit, Buyer alleged that Listing Broker’s failure to use due diligence in checking the public records for the accuracy of the listing information amounted to a breach of Listing Broker’s duties under New York real estate law.

The court found “several problems with [Buyer’s] allegations,” including the fact that Buyer worked for the New York City Department of Environmental Protection, and, as part of this job, did sewer maintenance for the city. In addition, the court determined that both parties had failed to submit into evidence a number of key documents, including the contract of sale and the title report. The court pointed out that either or both of these missing documents may have included information and disclosures related to the Property’s sewage system. Despite these factual and evidentiary issues, the court relied on New York’s real estate license law statutes and case law to determine that, “although [Buyer’s] alleged lack of knowledge borders on being less than credible, taking into account all of the facts, the primary responsibility for discovering the inaccurate information must fall on the [Listing Broker.]”

Concluding that, “had [Listing Broker] acted as a ‘professional’ and checked out the public records, the listing would have been corrected and claimant would not have even looked at the house,” the court determined that Broker had failed to use the requisite due diligence required by New York law, and was therefore liable to Buyer for the costs of connecting the property to the municipal sewer system.

McDermott v Related Assets, LLC 2014 NY Slip Op 51464(U) ( September 16, 2014). [Note: This opinion is not published in an official reporter and therefore should not be cited as authority. Please consult counsel before relying on this opinion].

Courtesy of www.realtor.org