Big lawsuit payouts are back in the spotlight in several states. In one state, a liability bill could send truck insurance costs soaring.
The Owner-Operator Independent Drivers Association has long pushed to rein in lawsuit abuse. OOIDA says some trial lawyers are getting more aggressive. They chase big payouts and dig into the pockets of truck drivers – even when those drivers had little or no fault in a crash.
Maryland
In Maryland, several groups – including OOIDA – are warning about a bill that would scrap limits on “pain and suffering” awards in injury cases.
Maryland first set a cap on non-economic damages in 1986. At that time, the cap was set at $350,000.
Today, the cap has climbed to $965,000. The amount increases by $15,000 each year. Even higher payouts are allowed in certain wrongful death cases.
Right now, juries are not told about the cap. If they award more than the limit, a judge cuts it back.
But a bill scheduled for a Feb. 18 hearing before the House Judiciary Committee would remove the cap.
The Maryland Alliance for Fair Liability Laws says that’s a bad idea. The group argues that pain and suffering are subjective and hard to measure. They add that Maryland already has one of the highest caps in the country.
They warn that removing the limit could lead to more lawsuits and larger jackpot verdicts.
If passed, HB476 could raise commercial truck insurance premiums by up to 30%. Personal auto insurance premiums could jump by as much as 19%.
Supporters of the bill say courts – not lawmakers – should decide how much money someone deserves.
The Senate version of the bill is also set for a Feb. 18 hearing. SB474 is in the Senate Judicial Proceedings Committee.
The Maryland Alliance for Fair Liability Laws has provided a form for residents to make their voices heard with lawmakers.
New York
New York lawmakers are taking a different path.
A liability bill backed by Sen. Monica Martinez, D-Brentwood, would limit what certain drivers can collect after a crash.
The cap would apply if the person suing were driving without insurance or driving drunk. A driver convicted of a felony during which the accident occurred would also have damages limited.
In those cases, they could only recover property damage, medical bills, and lost wages directly tied to the crash. No extra damages.
S8905 makes it clear the limits still apply – even if the person suing helped cause the crash.
Martinez said New York drivers already pay some of the highest insurance rates in the nation. She argues law-abiding drivers shouldn’t foot the bill for people who broke the law.
“This legislation is designed to ensure that those who flout New York’s insurance requirements cannot exploit the civil justice system for financial gain,” Martinez said. “These individuals have already chosen to disregard public safety and consumer protection laws.”
The liability bill is in the Senate Transportation Committee. The Assembly version, A9218, is in the Assembly Transportation Committee. LL
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.