Tackling Tort Reform in Texas: What it Means for the Trucking Industry
- aminder singh
- Dec 19, 2024
- 2 min read
The trucking industry in Texas is gearing up for a new battle in the realm of tort reform. Despite the optimism surrounding the 2021 enactment of HB 19, which was hailed as a step forward in curbing nuclear verdicts, the law’s impact has fallen short of expectations. This disappointment has led to a renewed push for reform, spearheaded by the newly formed Lone Star Economic Alliance (LSEA).
The Fallout of HB 19
When HB 19 was introduced, it aimed to protect trucking companies from the skyrocketing judgments that have plagued the industry, such as the $100 million verdict against Werner Enterprises. Key to the law was the “bifurcation” process and the “admission rule,” which sought to streamline trials by limiting the evidence that could be presented against trucking companies. However, amendments added at the eleventh hour diluted the law’s effectiveness, leaving the industry vulnerable.
Lee Parsley, general counsel for Texans for Lawsuit Reform (TLR), explained that the admission rule was supposed to simplify trials by focusing on damages directly caused by the accident, rather than delving into broader allegations like negligent hiring practices. Unfortunately, these amendments muddied the waters, making the law complex and difficult for defense attorneys to utilize effectively.
The Lone Star Economic Alliance
Recognizing the limitations of HB 19, TLR launched the LSEA to drive legislative change. While LSEA’s board comprises individuals from various sectors, trucking executives like John Esparza of the Texas Trucking Association and Adam Blanchard of Double Diamond Transport have taken center stage in advocating for reform. Their mission: to amend HB 19 by removing problematic clauses that incorporate federal trucking regulations, thereby restoring the admission rule to its intended purpose.
Why Reform Matters
The Werner Enterprises case is a prime example of why tort reform is critical. The 2019 judgment was inflated by evidence unrelated to the accident itself, such as Werner’s hiring practices and driver turnover rates. Under HB 19’s admission rule, such evidence would have been inadmissible in the trial’s first phase, potentially altering the verdict significantly. Reforming HB 19 could prevent similar cases from spiraling into “nuclear verdicts” that threaten the viability of trucking companies.
The Road Ahead
LSEA’s efforts face opposition from groups like the Texas Trial Lawyers Association, which emphasizes the need to prioritize road safety over industry protection. While no specific legislation has been proposed yet, the debate is expected to intensify as both sides prepare to present their cases to the Texas Legislature.
What’s at Stake for Trucking?
For the trucking industry, this isn’t just about protecting profits; it’s about ensuring a fair legal process. Nuclear verdicts can cripple even the most robust companies, affecting not just the businesses but also the broader economy that relies on trucking for goods transportation.
As discussions unfold, the industry’s voice must remain strong and united. The outcome of this renewed push for tort reform could set a precedent not just for Texas, but for the entire nation.
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