OOIDA: Iowa bill covering damages from truck crashes is a ‘money grab’

For the second year in a row, legislation at the Iowa statehouse focuses on pain and suffering damages in lawsuits involving commercial vehicles.

State lawmakers acted one year ago to address nuclear verdicts in lawsuits resulting from crashes with large trucks.

Nuclear verdicts often are described as ones where juries award exorbitant amounts for pain and suffering claims.

The Owner-Operator Independent Drivers Association welcomed passage of the new rules.

2023 law

Gov. Kim Reynolds signed legislation into law a year ago to address concern about nuclear verdicts. Her action capped noneconomic damages in lawsuits from crashes with heavy-duty trucks at $5 million.

While this limits noneconomic damages – including pain and suffering, mental anguish, inconvenience or loss of opportunity – economic damages are not limited. These include compensation for lost wages or medical expenses. Punitive damages, if awarded, also are not limited.

The rules apply to vehicles weighing more than 26,000 pounds, vehicles transporting hazardous materials, glider kit vehicles, road tractors, tow trucks and truck tractors.

Senate File 2224

Sen. Molly Donahue, D-Cedar Rapids, introduced a bill Tuesday, Feb. 6, that would reverse course on changes made a year ago.

Her bill covers tort liability in civil actions involving large trucks, including employer liability, noneconomic damages, punitive damages and exemplary damages.

SF2224 would do away with the state’s respondent superior law. Specifically, an employer would be made liable for an employee’s negligence. There is also the possibility an employer could be held responsible for direct negligence related to hiring, training, supervising or trusting an employee.

In addition, the bill would remove the $5 million cap on noneconomic damages that was set a year ago.

‘Money grab’

Doug Morris, OOIDA director of state government affairs, did not mince words about why SF2224 exists.

“This is nothing more than a money grab by the plaintiff’s bar so they can obtain larger verdicts and settlements in Iowa,” Morris said.

Morris highlighted statute that provides there is no liability for negligent hiring in actions involving commercial vehicles as long as the employer stipulates that the driver was in the course and scope of employment.

He noted that if the rule were repealed, defending truck cases in Iowa would become far more difficult and costly.

“Not only would it be necessary to defend the actions of the driver, but also the hiring practices of the employer, which gives plaintiff attorneys several more bites at the apple,” he said.

Addressing the $5 million cap, Morris added that noneconomic damages are the type that typically lead to nuclear verdicts and settlements that make headlines.

“Without the cap, damages for such things as pain and suffering, mental anguish, emotional pain and suffering would be unlimited,” he said.

SF2224 has moved to the Senate Transportation Subcommittee.

OOIDA encourages Iowa members to contact their state lawmakers and ask that they vigorously oppose this tort liability bill. LL

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