This article originally appeared on theDaily Caller News Foundationand was republished with permission.
Americans may be paying a hidden “lawsuit tax” through higher insurance premiums and higher prices for everyday goods, as trucking companies face rising litigation costs from staged crashes, massive settlements and “nuclear verdicts.”
Industry groups and lawsuit abuse critics told the Daily Caller News Foundation that costs from frivolous lawsuits and rising settlements are being passed down to consumers through elevated insurance premiums, higher transportation costs and inflated prices for everyday goods. They argue those costs are especially hitting the trucking industry, where rising commercial insurance premiums can ripple through freight rates, grocery bills, consumer goods and even personal auto insurance premiums.
“Abusive litigation practices against the trucking industry are driving up costs for consumers, destroying small businesses, and undermining public safety.” Henry Hanscom, American Trucking Association’s (ATA) chief advocacy & public affairs officer, told the DCNF.
The number of filed cases involving tractor-trailers has increased at an annual rate of 3.7% between 2014 and 2023, according to astudyby the American Transportation Research Institute. This comes as the personal injury market size rose 2.5% CAGR between 2020 and 2025,accordingto IBIS World.
Auto insurance premiums have been rising since February 2020, and insurance premiums havesoaredby 55%, according to NPR.
The Surface Transportation Reauthorization Act is set to expire in September and is considered must-pass legislation, as it sets federal transportation funding and policy. ATA supports including several lawsuit-abuse measures in the package or another legislative route, though it remains unclear if lawmakers will include those reforms in the final bill.
ATA Chairman Greg Hodgen and a group of trucking industry members met with both the House and Senate Judiciary Committees in April to discuss lawsuit abuse targeting the industry, including staged accidents, forum shopping, third-party litigation funding and frivolous lawsuits, Hanscom told the DCNF.
After hearing about the surge in staged crashes and the roughly $4,200 a year it adds to the average family’s costs, House Judiciary Committee Chairman Jim Jordan said he wants to take a closer look at it.
A spokesperson from Jordan’s office confirmed to the DCNF that the Representative’s office is “looking into it.”
Source: The Vigilant Fox
