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  • Lack of Training and Violations Lead to Nuclear Verdict

     John Davis updated 5 months, 2 weeks ago 2 Members · 3 Posts
  • John Davis

    September 11, 2020 at 9:54 am
    24 Contributions

    Here is another case that the evidence was presented that lack of driver training and too many violations through the CSA SMS BASIC portal lead to a $58 million+ verdict. They also sighted driver fatigue.


    Minimize the risk of this happening to your company. Conduct monthly training and be proactive in reducing violations. We can help you develop those strategies.

  • Ryan Davis

    September 11, 2020 at 10:47 am
    3 Contributions

    @callmejd who pays when a verdict like this comes out? Is it the insurance carrier footing the bill?

    If so, do verdicts like this contribute to inflated premiums?

  • John Davis

    September 11, 2020 at 1:49 pm
    24 Contributions

    What happens is the insurance carrier pays their policy limits, plus their cost to defend the lawsuit.

    Any excess verdict amounts are the responsibility of the motor carrier.

    For example, a jury awards $5,000,000. The insurance carrier would pay $750,000 of the verdict and the motor carrier would owe $4,250,000. Obviously, an amount that could put the motor carrier out-of-business.

    The other costs associated to large verdicts are either higher insurance premiums or an account being uninsurable.

    Motor carriers need to take the possibility of large verdicts seriously.

    Motor carriers should also have discussions with their insurance agents about increasing policy limits and excess liability coverage.

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