The trucking industry is under increasing pressure from nefarious actors who stage accidents and exploit unfair litigation tactics for financial gain. These practices not only endanger highway safety but also jeopardize the stability of trucking companies by driving up insurance costs and forcing businesses to close their doors.

Key Points:

1. Impact of Fraudulent and Unfair Litigation:
   • Staged accidents and inflated lawsuits exploit trucking companies, resulting in soaring insurance premiums and unsustainable operating costs.
   • Small and mid-sized trucking businesses are particularly vulnerable, as they often lack the financial resources to combat these tactics in court.
2. Commitment to Responsibility:
   • The trucking industry emphasizes its dedication to highway safety and accountability.
   • Injured parties deserve fair compensation, and the industry does not seek to avoid its responsibilities. Instead, it seeks protection from exploitative practices that threaten its survival.
3. Support for the Highway Accident Fairness Act (H.R. 2936):
   • This legislation aims to establish fair legal standards for litigation involving trucking companies.
   • By addressing inflated claims and unfair tactics, the Act ensures that compensation is just and proportionate, protecting both injured parties and trucking businesses.

Legislative Goals:

• Curb Exploitative Practices: Prevent fraudulent claims and staged accidents that unfairly target the trucking industry.
• Reduce Financial Burdens: Stabilize insurance costs by fostering a fair legal environment that reduces frivolous lawsuits.
• Promote Highway Safety: Discourage dangerous behaviors such as staged accidents that put all road users at risk.

Next Steps:

• Advocacy: Encourage lawmakers to cosponsor the Highway Accident Fairness Act (H.R. 2936) to create a balanced legal framework that supports fairness and accountability.
• Education: Inform stakeholders about the economic and safety impacts of unfair litigation tactics on the trucking industry and the broader economy.
• Collaboration: Partner with legal experts, insurers, and industry advocates to build momentum for legislative reform.

The Highway Accident Fairness Act represents a critical step in protecting the trucking industry from unjust legal practices while ensuring fair compensation for legitimate claims. By supporting this legislation, lawmakers can promote a safer, more stable, and equitable transportation sector.

The Highway Accident Fairness Act of 2023 (H.R. 2936)

The Highway Accident Fairness Act of 2023 (H.R. 2936) is a bipartisan bill introduced in the U.S. House of Representatives on April 27, 2023, by Representative Henry Cuellar (D-TX), with co-sponsors Representatives Mike Bost (R-IL) and Garret Graves (R-LA).

The legislation aims to address fraudulent activities and enhance transparency in legal proceedings involving commercial motor vehicle accidents.

Key Provisions:

1. Criminalization of Staged Collisions:
   • The Act makes it a federal crime to intentionally cause a collision with a commercial motor vehicle or to arrange for such a collision. Offenders may face fines and imprisonment of up to 20 years. If the staged collision results in serious bodily injury or death, the minimum imprisonment term is 20 years. Congress.gov
2. Third-Party Litigation Funding (TPLF) Disclosure:
   • In civil actions alleging bodily harm or loss of life involving commercial motor vehicles, plaintiffs are required to disclose any third-party commercial enterprises that have a right to receive payment contingent on the outcome of the case. This includes producing any agreements related to such funding. Congress.gov
3. Federal Jurisdiction Over Certain Cases:
   • The Act grants federal courts jurisdiction over civil actions involving commercial motor vehicle accidents where the amount in controversy exceeds $5 million and meets specific diversity of citizenship criteria. Congress.gov

Purpose and Rationale:

The legislation seeks to:

• Ensure fair and prompt recoveries for highway accident victims.
• Protect the motoring public from the hazards of staged collisions.
• Prevent fraudulent claims resulting from such staged incidents.
• Preserve predictability and stability in the movement of freight in interstate commerce.
• Lower costs to the supply chain and, ultimately, to consumers. Congress.gov

Current Status:

As of November 2024, H.R. 2936 has been referred to the House Committee on the Judiciary and is awaiting further action.

The Act has garnered support from various industry stakeholders who emphasize the need to combat fraudulent activities that jeopardize highway safety and impose financial burdens on the trucking industry.

Verisk

By addressing staged collisions and enhancing transparency in litigation funding, the Highway Accident Fairness Act of 2023 aims to promote fairness and integrity in legal proceedings related to commercial motor vehicle accidents.