FAIR Trucking Act: Will New Bill Curb Forum Shopping in Truck Accident Lawsuits?

The trucking industry is facing a tidal wave of litigation, with “nuclear verdicts” – those exceeding $10 million – becoming increasingly common. A recent report indicated that state courts accounted for nearly double the total sum of nuclear verdicts than federal courts ($20.1 billion vs. $11.2 billion) in 2024. To address this growing concern, the Forum Accountability and Integrity in Roadway (FAIR) Trucking Act has been introduced in Congress. But will this new bill truly curb forum shopping and create a more equitable legal landscape for trucking companies, or is it merely a band-aid on a deeper wound?

The Rise of Nuclear Verdicts and Forum Shopping

“Forum shopping” is a legal tactic where plaintiffs’ attorneys strategically file lawsuits in jurisdictions they believe will be more favorable to their clients, often seeking out courts with a history of large payouts. This practice has become a significant issue in trucking accident lawsuits, with personal injury lawyers allegedly targeting state courts where they anticipate more sympathetic juries and a greater likelihood of “nuclear verdicts.”

These massive verdicts can have devastating consequences for trucking companies, particularly smaller carriers, leading to skyrocketing insurance premiums, operational restrictions, and even bankruptcy. The FAIR Trucking Act is designed to address these concerns by shifting certain high-value trucking lawsuits to federal court.

What the FAIR Trucking Act Proposes

The FAIR Trucking Act aims to amend Title 28 of the U.S. Code to expand federal court jurisdiction over civil actions involving interstate commercial trucking accidents when specific conditions are met. Specifically, the bill applies when:

The case involves bodily harm or loss of life resulting from a crash involving one or more commercial motor vehicles engaged in interstate commerce.
The claim seeks damages exceeding $5 million, excluding interest and costs.
There is diversity of citizenship between the parties, meaning the plaintiff and defendant reside in different states or involve a foreign entity.

If all three conditions are satisfied, the case would be moved to federal court. Proponents of the bill argue this will create a fairer system for the trucking industry by limiting forum shopping and reducing excessive verdicts. They believe federal courts will provide a more neutral playing field, leading to more rational outcomes.

Arguments for and Against the FAIR Trucking Act

Supporters of the FAIR Trucking Act, including industry groups like the American Property Casualty Insurance Association (APCIA), argue that it is a crucial step toward restoring balance and fairness in the legal system. They contend that frivolous litigation targeting the trucking industry drives up insurance costs, threatens the stability of the supply chain, and jeopardizes the livelihoods of small businesses. By ensuring cases are heard in appropriate jurisdictions, the bill aims to curb abusive legal tactics and promote a more predictable and equitable legal environment.

Critics, however, express concerns that the FAIR Trucking Act may not be a comprehensive solution and could even have unintended consequences. Some argue that it could restrict justice for victims and raise legal costs. They also point out that federal juries aren’t immune to emotional manipulation, and federal judges aren’t necessarily more knowledgeable about trucking operations.

Furthermore, some critics suggest that the bill doesn’t address the underlying issues driving the increase in nuclear verdicts, such as unlimited litigation funding, psychological manipulation tactics, and the transformation of compensation into punishment. They argue that moving cases to federal court may only reduce some instances of venue shopping but won’t solve the fundamental problems plaguing commercial vehicle litigation.

The Broader Context: Interstate Trucking Regulations and Liability

Understanding the FAIR Trucking Act requires considering the complex web of regulations governing the trucking industry. Interstate trucking is primarily regulated at the federal level by the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA sets standards for driver qualifications, hours of service, vehicle maintenance, and cargo securement. These regulations are designed to ensure safety on the roads and prevent accidents.

When a truck accident occurs, determining liability can be a complex process. Multiple parties may be held responsible, including:

The truck driver: If the driver was negligent, distracted, fatigued, or under the influence, they could be held liable.
The trucking company: Trucking companies can be liable for negligent hiring practices, failing to maintain vehicles, or pressuring drivers to violate regulations.
Cargo loading companies: If the cargo was improperly loaded or secured, leading to an accident, the cargo loading company may be liable.
Truck manufacturers or parts suppliers: If a defective part caused the accident, the manufacturer or supplier could be held accountable.

Violations of FMCSA regulations can significantly impact a truck accident case. If a trucking company or driver violated federal regulations, this can be used as key evidence to prove negligence and increase the likelihood of compensation for the injured party.

Advice for Trucking Companies

Regardless of the FAIR Trucking Act’s fate, trucking companies should take proactive steps to mitigate their risk of accidents and potential liability:

Prioritize safety: Implement comprehensive safety programs that emphasize driver training, vehicle maintenance, and compliance with all federal and state regulations.
Hire qualified drivers: Conduct thorough background checks and ensure drivers meet all qualifications and have a proven track record of safe driving.
Maintain vehicles: Regularly inspect and maintain vehicles to prevent mechanical failures that could lead to accidents.
Properly load cargo: Ensure cargo is properly loaded and secured to prevent load shifts or rollovers.
Monitor driver fatigue: Enforce hours of service regulations and encourage drivers to take adequate rest breaks to prevent fatigue-related accidents.
Invest in technology: Utilize technology such as electronic logging devices (ELDs) and collision avoidance systems to improve safety and compliance.
Consult with legal counsel: Seek guidance from experienced legal counsel to ensure compliance with all applicable laws and regulations and to develop strategies for managing potential liability.

The Road Ahead

The FAIR Trucking Act represents a significant attempt to address the growing concerns surrounding litigation in the trucking industry. While its effectiveness remains to be seen, the bill has sparked a crucial conversation about the need for fairness and balance in the legal system. Whether or not it becomes law, trucking companies must remain vigilant in prioritizing safety, complying with regulations, and protecting themselves from potential liability.

The FAIR Trucking Act is currently before the judiciary committee.