By Bobby Jenkins
Groceries to your doorstep. Packages safely delivered. Toilet paper, face masks, holiday gifts, and now, vaccines are all seamlessly transported across the state and around the country. During the pandemic, we have all become keenly aware of the importance of delivery and service vehicles to our daily lives. And, so have personal injury lawyers.
Searching for another big payoff, some personal injury lawyers have set their sights on commercial or company vehicle owners and operators. And it’s not just big trucks like 18-wheelers that are at risk. It’s any truck or car with a company logo on it, no matter the size or industry, and no matter how minor the accident or who was at fault. If your neighborhood pharmacy makes deliveries in a car with a logo on its door, that business is a potential target of a questionable lawsuit. So is everyone from rideshare services to restaurant delivery vehicles to plumbers.
In Texas today, nearly 88 percent of commercial carriers operate 10 or fewer vehicles. And many company cars and trucks on the road these days are operated by small businesses. These entrepreneurs create jobs in hundreds of Texas communities, large and small. All are targets for opportunistic personal injury lawyers.
Why? A commercial vehicle operating in Texas must carry substantial liability insurance, ranging from a minimum of $300,000 to a maximum of $5 million. Many have more than the minimum coverage, with layers of insurance reaching into the multi-millions of dollars. With insurance and their own assets, these business have resources that are irresistible to some personal injury lawyers.
My business offers pest control and other home-related services in Austin, San Antonio, College Station, Bell County and Corpus Christi. Our technicians drive hundreds of thousands of miles in our company trucks. Our drivers complete safe driving training regularly. Our vehicles are maintained on a set schedule, and we have an excellent safe-driving record across our communities. But, increasingly, the threat of lawsuits impacts our business planning.
Motor vehicle litigation is increasing across Texas, while other types of personal injury lawsuits are decreasing. According to the Texas Office of Court Administration, the number of motor vehicle lawsuits has climbed 118 percent from fiscal 2008 to fiscal 2019. During the same period, other types of injury and damage cases decreased seven percent.
In 2008, a lawsuit was filed after one out of 17 vehicle accidents in Texas. In 2019, that ratio was about one out of 10 accidents – a 71 percent increase. As a result, insurance rates are skyrocketing – as much as 30 percent in one year for some companies, and that has already driven some trucking businesses out of business.
While there may be legitimate insurance claims to be made when accidents occur, the growing number of these lawsuits, and the abusive nature of many, stands to hurt everyone, from the consumer to the business owner.
The Texas Legislature should act quickly to rein in this abuse and pass commercial vehicle lawsuit reforms. Without immediate change, small businesses will continue to be saddled with increased costs of doing business, and we could certainly see more trucking businesses close their doors. And all of us will pay more for the goods and services we need and depend on.
It’s time to put a stop to this lawsuit abuse.
Bobby Jenkins is president of ABC Home & Commercial Services in Austin. He is a board member of Citizens Against Lawsuit Abuse of Central Texas.