Damages related to truck crashes topic of vetoed Wisconsin bill

Wisconsin Gov. Tony Evers has vetoed a commonsense truck insurance reform that was touted to counter nuclear verdicts.

The legislation, SB613, called for capping the total amount of noneconomic damages, such as pain-and-suffering, that a person may recover from a trucking company. A $1 million limit on noneconomic damages would apply to incidents with a truck that result in injury, death or other loss.

The bill did not limit direct damages, such as medical expenses.

A rising problem in the transportation industry

Rep. Rick Gundrum, R-Slinger, said SB613 addressed a worsening problem in the industry.

He previously told lawmakers about a study by the American Transportation Research Institute that showed the average verdict size for a lawsuit above $1 million involving a truck crash has increased nearly 1,000%.

Gundrum noted that while a plaintiff hurt in an accident with a truck certainly has the right to file a lawsuit, “the problem with the rise in nuclear verdicts is that they are now seriously beginning to damage the trucking industry.”

In written testimony, Sen. Cory Tomczyk, R-Mosinee, wrote that the commercial trucking industry has seen an increase in large-scale litigation.

He highlighted a July 2023 report from the U.S. Chamber of Commerce Institute for Legal Reform that showed despite a decline in fatal crashes by more than one-third over the past two decades, “there has been a significant inflation in the valuation of verdicts and settlements, with the average settlement award reaching $27.5 million.”

Tomczyk said his bill addressed a rising problem by placing a reasonable cap on noneconomic damages.

The Wisconsin Motor Carriers Association and Owner-Operator Independent Drivers Association supported the reform legislation.

WMCA President Neal Kedzie previously told lawmakers the truck insurance legislation is about setting reasonable limits to curb the growing abuse of noneconomic damages.

Governor airs grievances with Senate Bill 613

Evers said he vetoed the bill for multiple reasons. First, he said he objects to “arbitrarily capping” noneconomic damages in tort actions involving a motor carrier.

“A fundamental principle in our legal system is that everyone is entitled to remedies in the law for all injuries, and when it comes to remedy, the law should redress a party’s injury, not repress an injured party,” Evers wrote.

The governor added that he was concerned the bill fundamentally violates constitutional principle “as well as equal protection guarantees and due process rights under the United States and Wisconsin constitutions.”

One other grievance Evers had with the bill was that it was “inconsistent with current law,” he said.

“Even if the bill withstood constitutional scrutiny, its incongruity with current law will create implementation issues and make it subject to litigation,” he added.

Doug Morris, OOIDA director of state government affairs, said the lawsuit abuse reform legislation was a commonsense bill.

“Once again, Gov. Evers has chosen trial attorneys over small business,” Morris said. LL

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