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Two states looking to limit nuclear verdicts

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Trucking news and briefs for Friday, March 3, 2023:

Lawmakers in Florida and Iowa have turned their attention toward nuclear verdicts in efforts to decrease the likelihood of exorbitant damages being awarded in lawsuits where the party being sued is mostly not at fault.

On Feb. 14, Florida Gov. Ron DeSantis announced proposed tort reform in the state that would, among other things, “institute reforms to protect small businesses from being subjected to paying exorbitant damages when they are not primarily at fault,” a press release from DeSantis said. “Under current law, fraudsters and con artists prey on small businesses by filing lawsuits when injured, even if they are up to 99% at fault.”

The proposal in Florida would also set standards for awarding medical damages “to prevent fraudulent practices that currently plague Florida’s litigation environment.” The proposed standards would require medical records, procedure codes and information related to health insurance reimbursement “to ensure accurate settlements are reached between parties.”

In Iowa, legislation has been passed in the Senate that would prevent trucking companies from being sued for ”direct negligence in hiring, training, supervising, or trusting” an employee truck driver involved in a crash. The bill has been sent to the Iowa House, where a similar bill has been passed through committee.

The passed Senate bill would limit noneconomic damages awarded in a civil lawsuit against trucking companies to $2 million, but it would not limit economic damages, such as lost wages or medical expenses. The noneconomic damages limit would not apply if the truck driver was convicted or found to be in violation of drug and alcohol regulations in connection with the crash.

[Related: Experts say understanding data, operationalizing safety are best practices in preventing nuclear verdicts]