Introduced by Congress representative Ashley Hinson on September 10, this article will explain what the Fair Trucking Act is. Over the last few decades, the trucking industry has grown to move over 70% of the US’s freight yearly. Alongside the growing number of carriers, there has been an increasing number of lawsuits from accidents in the industry. The amount juries award in truck crashes reportedly rose from approximately $2.3 million in 2010 to $22 million in 2018. Lawmakers have introduced the Fair Trucking Act (Forum Accountability and Integrity in Roadway Trucking Act) to address the litigation crisis. Despite being in the early stages of development, it could have lasting impacts on shippers and carriers.
What is the FAIR Trucking Act, and How Can It Benefit The Industry?
The FAIR Trucking Act is a bill that will change where trucking-related lawsuits are filed. Federal district courts now have original jurisdiction over accident cases that meet certain conditions. The act will specifically apply if:
- The amount being claimed in the accident is over $5 million.
- The crash involves a carrier that operates in interstate commerce.
- The case includes a “diversity of citizenship”, meaning that at least one plaintiff and defendant come from separate states.
Shifting from state to federal courts aims to reduce “forum shopping.” Forum shopping is where litigants actively try to select the court that will provide a more favorable judgment. Compared to federal courts, plaintiffs or their attorneys tend to choose courts that are more favorable to larger verdicts.
Congress proposes the act to bring fairness to civil litigation and create a fairer case for interstate carriers. After its announcement, the bill quickly sparked debate in the industry, with both praise and criticism. Large players like the ATA (American Trucking Association) favor the act, noting that it will allow greater consistency in rulings. The ATA believes that interstate carriers often face lawsuits in plaintiff-friendly jurisdictions that can cost them millions. For shippers, fairer rulings could result in more predictable shipping costs and fewer supply chain disruptions.
What Are Some Concerns Regarding This Act?
Despite those in favor of the act, others, like certain lawyers and advocates for accident victims, are against it. The main argument is that it may result in unfair justice for families affected by trucking accidents. Federal courts tend to have strict procedural rules, which makes it harder for a plaintiff to seek significant punitive damages. Another criticism is that the act favors trucking companies over those affected by accidents. This could take power away from victims and deny the ability to hold companies accountable. If Congress passes the bill, it may restructure how major trucking accident cases are handled and reshape safety standards.
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