U.S. Chamber Institute for Legal Reform says nuclear verdicts, excessive litigation threaten trucking industry

The U.S. Chamber Institute for Legal Reform (ILR) has released research indicating that nuclear verdicts and excessive litigation in the trucking industry are placing significant strain on the sector. These factors are reportedly increasing insurance costs and posing a threat to small operators, prompting calls for reforms. The announcement was made via a press release.

The trucking industry is crucial to the U.S. economy, transporting over 70% of domestic freight tonnage. According to the American Trucking Associations (ATA), trucks moved 11.46 billion tons of freight in 2022, generating nearly $940 billion in gross freight revenues. This highlights the industry's vulnerability to litigation and nuclear verdicts, which could have wider economic implications as rising costs for carriers may lead to increased consumer prices.

According to ILR’s 2024 report titled "Nuclear Verdicts: An Update on Trends, Causes, and Solutions," trucking nuclear verdicts between 2013 and 2022 amounted to over $5.5 billion before any appeals or reductions. The report states that approximately 90% of these verdicts originated in state courts, with California, Florida, Illinois, New York, and Pennsylvania having the highest per capita rates. These findings emphasize how geographic disparities in legal climates challenge trucking companies—particularly small operators—in planning for or insuring against unpredictable liabilities.

The American Transportation Research Institute (ATRI) has also documented significant increases in verdict sizes affecting the trucking sector. ATRI's 2020 study found that cases with verdicts exceeding $1 million rose by 235% when comparing data from 2005–2011 with that from 2012–2019. Additionally, the average award increased from $5 million in 2010 to $23.5 million by 2018. ATRI concluded that such large and disproportionate verdicts threaten smaller carriers' survival and increase overall transportation costs, which ultimately impact consumers.

The U.S. Chamber Institute for Legal Reform is an affiliate of the U.S. Chamber of Commerce focused on advocating for a fairer civil justice system. According to ILR, its mission is to reduce excessive litigation and promote reforms that balance justice for businesses and individuals alike. Its latest research into trucking litigation recommends several reforms including transparency in medical damages, limits on noneconomic damages, curbs on inappropriate jury influence, and removal of seatbelt "gag laws" to foster a more balanced legal system.