Legislation in Wisconsin and Indiana aims to limit "nuclear verdicts" against carriers.
A recently passed bill in Wisconsin aims to limit non-economic damage awards in lawsuits related to commercial vehicle accidents. Meanwhile, Indiana lawmakers have approved a bill allowing evidence of a plaintiff’s seat belt usage in accident lawsuits.
Both pieces of legislation, which could impact multimillion-dollar nuclear verdicts against trucking companies, now await the governors' signatures in their respective states.
The Wisconsin bill proposes a cap on non-monetary damages—such as pain and suffering—at $1 million. The measure, largely supported by Republicans, passed the State Senate with a mostly party-line vote, while the State Assembly approved it via a voice vote. The American Trucking Associations (ATA), which endorses the bill, highlighted its importance in a news release.
During testimony in January, Republican state Rep. Rick Gundrum referenced an American Transportation Research Institute study indicating that verdicts exceeding $1 million in truck crash lawsuits surged from an average of $2.3 million to $22.3 million between 2010 and 2018.
The ATA has urged Democratic Gov. Tony Evers to sign the bill, arguing that excessive verdicts encourage “frivolous lawsuits that exploit the system for profit.” Neal Kedzie, president of the Wisconsin Motor Carriers Association, stated that the trucking industry is vital to the state and that rampant lawsuit abuse hampers safe and efficient operations.
Conversely, the Wisconsin Association for Justice, representing attorneys, criticized the bill as an “attack on citizens’ rights to seek justice after catastrophic injuries and deaths on state roadways.”
As for the Indiana bill, Republican Gov. Eric Holcomb is expected to decide soon whether to sign it into law. This legislation allows a plaintiff’s seat belt usage to be introduced as evidence in vehicle accident cases, potentially influencing jury decisions regarding damage awards, as reported by the Indiana Capital Chronicle.
ATA President and CEO Chris Spear praised the Indiana legislation, asserting that it eliminates the “seat belt gag rule” and ensures jurors receive complete information for fair verdicts. Critics, however, argue that the bill diverts attention from determining fault in accidents.