High dollar “nuclear verdicts” and other struggles with the judicial system have cut into the bottom lines of many transportation companies.
For many in the trucking industry, the insurance industry and the halls of government, legal reforms of the judicial system remain a top priority.
While there are many opinions about how best to manage the Texas legal system, the numbers suggest that people and businesses in the Dallas area lose thousands each year on lawsuits.
Lawsuits do not just impact the trucking companies that have to settle them or, worse, pay a hefty verdict after an unsuccessful trial. Businesses ultimately transfer the costs of lawsuits, or even the risk associated with the threat of lawsuits, on to others through higher prices.
On a related point, insurance providers must increase their premiums for liability coverage when lawsuits become more frequent and payouts get higher. Higher premiums translate into more expenses for businesses and, ultimately, higher prices for those businesses’ customers.
These higher costs do not just affect large trucking companies that seemingly can afford it.
Smaller and mid-sized commercial transportation businesses in the greater Dallas area also feel the pinch when lawsuits push their costs higher and increase their overall legal risk. These costs may make it harder for them to keep up with the larger trucking companies in the market.
An effective legal strategy may be the best defense against lawsuit abuse
Texas lawmakers have taken some steps to combat the problems in the legal system that plague the trucking business. However, none of these legislative solutions is full proof.
The best way to prevent a nuclear verdict or abusive litigation tactics is to mount a vigorous defense.
For example, attorneys experienced with trucking litigation know both the common techniques plaintiffs use to secure unfairly high verdicts and how to fend these tactics off in court.