U.S. Reps. Mike Flood (R-NE), Jake Ellzey (R-TX), Jay Obernolte (R-CA) and David Rouzer (R-NC) introduced legislation that would address the recent spike in trucking lawsuits.
The Uniform Vehicle Safety Standards Act would address lawsuits that seek damages for standards set by states rather than federal authorities, the law makers said. A companion bill was introduced in the Senate by U.S. Sen. Deb Fischer (R-NE).
“In recent years, we’ve seen a sharp rise in lawsuits awarding damages based on state standards instead of the federal safety standards trucking companies are already required to meet,” Flood said. “Americans deserve one clear set of rules instead of a patchwork of state regulations that drive up costs and create uncertainty for businesses that already follow the law.”
The legislation would make federal safety standards set by the National Highway Traffic Safety Administration the nationwide standard, providing greater certainty to trucking while “upholding federalism,” the law makers said.
The legislation comes as civil lawsuits where juries award damages for accidents based on state standards even when the vehicle in question was in full compliance with federal standards are on the rise, the Congress members said. The result of these cases has been an increase in insurance costs, forcing the trucking industry to face steep payments even when meeting federal standards, and subjecting the trucking industry to regulatory uncertainty.
“Federal motor vehicle safety standards provide manufacturers with clear and consistent requirements that apply nationwide,” Obernolte said. “When manufacturers comply with those standards, they should not face costly lawsuits simply for failing to exceed them. Lawsuit abuse raises costs across the supply chain, threatens American jobs and ultimately leaves consumers paying the price. The Uniform Vehicle Safety Standards Act will restore certainty for manufacturers while ensuring vehicle safety requirements remain grounded in consistent federal standards.”
This legislation is endorsed by major industry and trucking groups, including Alliance for Automotive Innovation, American Bus Association, American Property Casualty Insurance Association, American Trucking Associations, International Foodservice Distributors Association, National Association of Mutual Insurance Companies, National Association of Trailer Manufacturers, National Motor Freight Traffic Association, National Tank Truck Carriers, Nebraska Trucking Association, Timpte, Truck Renting and Leasing Association, Truck Trailer Manufacturers Association, Truckload Carriers Association, and Werner.
“When NHTSA establishes a federal safety standard, manufacturers and motor carriers should be able to rely on that determination. Allowing lawsuits to effectively impose equipment mandates that diverge from federal requirements creates uncertainty, drives up costs, and threatens the uniformity that keeps our nation’s supply chain moving safely and efficiently,” American Trucking Associations SVP of Legislative Affairs Alex Rosen said. “If NHTSA, after evaluating the available evidence through its rulemaking process, determines that a particular standard strikes the appropriate balance to maximize motor vehicle safety, that expert determination should carry greater weight than the hindsight judgments advanced by profit-seeking trial attorneys in individual courtrooms.”