Tort Reform: Hitting the Brakes on Frivolous Lawsuits and Nuclear Verdicts
Tort reform remains a hot topic in commercial transportation law, pitting the fight for justice for accident victims against the push to curb skyrocketing lawsuits and keep the wheels of the trucking industry turning. Within recent years, states across the country have decided to take a stand against frivolous lawsuits and exorbitant verdicts by pursuing more predictable legal environments, stabilized insurance markets, and protecting an industry that plays a vital role in supporting the economy and daily life.
When you think of tort reform, you most likely think about nuclear verdicts and statutory caps on damages. Some states have recently implemented statutory non-economic damages caps to combat the astronomical jury verdicts in commercial vehicle lawsuits. In West Virginia, where 85% of the state’s communities depend completely on trucks to transport goods, Governor Jim Justice enacted legislation to put a cap on damages in claims involving commercial motor vehicles. SB 583, which breezed through the West Virginia legislature in 2024, capped non-economic damage awards in civil lawsuits involving personal injury or wrongful death claims against commercial motor vehicles at $5 million.
The state of Iowa took a similar step in 2023. Senate File 228, signed by Governor Kim Reynolds in April 2023, caps non-economic damages at $5 million in lawsuits against commercial vehicle companies and their drivers. The legislation carves out some exceptions for applying the cap, such as for drunk driving, excessive speed, and using a commercial vehicle during a felony. Another aim of the bill was to protect trucking companies against charges of negligent hiring. If the company stipulates that an involved driver is its employee and was acting within the scope of their employment, courts are directed to dismiss any legal claims that the company negligently hired the driver.
In the more general tort reform context, Florida ratified a sweeping tort reform bill in March 2023. The reform resulted from Florida’s notorious history as a top contender for the most nuclear verdicts in the country. Florida juries awarded approximately $33.2 billion in verdicts between 2009 and 2023. This number is reported to have decreased in response to H.B. 837, which was signed by Governor Ron DeSantis, who strongly supported the bill.
Key provisions of this wide-ranging tort reform effort first included a switch from a “pure” comparative negligence system to a “modified” comparative negligence system. Under the modified new system, if a plaintiff is found to be more than 50% at fault for their injuries, they cannot recover any damages from other parties. The legislation also shortened the statute of limitations for actions claiming negligence from four years to two years as well as heightened the standard to establish a cause of bad faith against an insurer.
Though West Virginia, Iowa, and Florida are examples of recent developments in tort reform, some states have pumped the brakes on reform efforts. New Hampshire Senate Bill 462, enacted in 2024, removed the statutory cap on damages for wrongful death loss of consortium claims. Prior to this legislation, which takes effect on January 1, 2025, New Hampshire had a cap of $150,000 on such damages. In a similar vein, Minnesota expanded recovery in wrongful death claims by passing the Minnesota Survivorship Statute in 2023, which allows for seeking damages for the deceased’s pain and suffering.
Colorado has taken a more substantial leap, greatly increasing the statutory caps on damages through House Bill 24-1472, which was signed into law in June 2023. Starting January 1, 2025, the cap on non-economic damages in personal injury and wrongful death cases will increase from $250,000 to $1.5 million. Starting January 1, 2028, and every two years thereafter, this cap will adjust based on inflation. A new cap of $2.125 million will be established for wrongful death cases. This cap will also adjust biannually for inflation beginning January 1, 2028. Additionally, the legislation expands the list of individuals eligible to file a wrongful death action to include siblings of the deceased under certain circumstances.
While these changes are significant to the development of state tort laws, the conversation extends to the federal level. The Highway Accident Fairness Act of 2023 (H.R. 2936) remains under consideration in the legislative process. The bill was introduced to the 118th Congress in April 2023 by Representative Henry Cuellar, and co-sponsored by Representatives Mike Bost and Garret Graves. There are three key components to H.R. 2936. First, it aims to “prohibit staged collisions with commercial motor vehicles, and for other purposes,” by making it a federal crime to stage an accident with a commercial motor vehicle. Second, the bill mandates that plaintiffs disclose any external financial backing they receive for a lawsuit in state or federal court, ensuring that the involvement of outside parties is made clear to the court. This provision aims to reduce the potential for abuse and prevent cases from being driven by financial interests rather than the pursuit of justice. Third, the bill gives federal courts jurisdiction over actions in certain cases where damages exceed $5 million. This measure would assist in centralizing high-stakes cases in the federal system and reduce forum shopping. Though the bill has not advanced beyond the committee stage, it represents a step toward addressing frivolous and fraudulent practices and obtaining greater legal certainty on a national level.
Written by Leah R. Dotter, Esq.
