The litigation environment for owners and operators of commercial or company vehicles has reached a tipping point that, unless addressed by the Texas Legislature, will result in growing small business failures, increased costs of doing business for the companies that survive, and increased costs for goods and services purchased by all Texans.
Opportunity seeking plaintiff lawyers partner with unscrupulous medical providers to grossly inflate injury claims far beyond the patient’s actual needs. These exaggerated costs are used to leverage lawsuit settlements. As a result, insurance rates are skyrocketing for the transportation industry and insurers are leaving the market, forcing many companies that operate commercial vehicles to close their doors.
The Texas Legislature must pass common-sense reforms to help level the playing field against these tactics. This includes requiring liable defendants to be responsible for medical bills actually paid or owed by the plaintiff, addressing the “letters of protection” that allow plaintiffs lawyers to sidestep health insurance and addressing legal tactics that manipulate juries into larger settlements.
Lawsuit Abuse and Its Impact on the Transportation Industry
Crash litigation is big business for plaintiff lawyers in Texas. Motor vehicle litigation is increasing in the state, while other kinds of personal injury litigation is decreasing, according to the Texas Office of Court Administration. Texas has reached the point that a lawsuit is filed in about 1 out of 10 crashes. Abusive crash lawsuits threaten our supply chain, leading to empty grocery store shelves, more expensive goods and services and countless jobs lost.
118 Percent Increase in Motor Vehicle Lawsuits Since 2008
1 in 10
1 in 10 Lawsuit-to-Crash Ratio in Texas
30 Percent Increased Insurance Costs for Commercial Motor Vehicles
20 Times the Amount Charged Above Medical Providers Insurance-Based Rates