Massive shifts in the economy, labor shortages, and crowded roads and highways have come together over the past decade to create the perfect storm for the transportation industry. These conditions have also provided fertile ground for what are known as “nuclear verdicts.” The term has been applied to punitive judgments running into the tens of millions of dollars.
The growing problem is that insurance usually covers only a small portion of a nuclear verdict — meaning that a single judgment can put a trucking firm out of business.
Why These Outsized Verdicts?
The problem has been developing for some time, and has only been exacerbated by the COVID pandemic and the “Great Resignation.” Older and/or experienced drivers are retiring and being replaced by young, inexperienced ones when they are replaced at all. Meanwhile, remaining drivers wind up shouldering a larger burden, driving longer hours.
As a result, the number of injury accidents involving tractor-trailer rigs has increased by over 40 percent over the last dozen years. This has led litigators to seek, and jurors to award, larger amounts to successful plaintiffs.
What Can Be Done?
Other factors contributing to nuclear verdicts include growing public pessimism and distrust of large corporations and an increase in litigation funding.
Tort reform measures in several states have helped to rein in these costs, but broader legislative efforts are needed. This requires lobbying efforts by insurers as well as trucking companies.