Partner Jay Stefani talks with the Chicago Reader

October 3, 2016 by Levinson and Stefani Leave a Comment

Jay_End-Distracted-Driving — Partner Jay Stefani

Recent crash deaths have shaken the city’s cycling community to the core, and it may be time for lawmakers to start prioritizing ways to protect them, according to experts like our own Jay Stefani.

As reported by the Chicago Reader, four cyclists have recently been killed in incidents related to “right-hook” crashes that involve large trucks.

“The truck blocks your path, you’re stuck, and you fall under the massive vehicle. The rear wheels roll over your body, causing severe, likely fatal, injuries,” writes reporter John Greenfield, also editor at Streetsblog Chicago.

That sums up a nightmare scenario that has become increasingly problematic in big cities like Chicago, whose residents rely on bikes as a primary mode of transportation. But that’s just the tip of the iceberg, as Jay pointed out to Greenfield, specifically with regard to protective side guards—features installed on the sides of trucks that could potentially prevent these kinds of fatalities from happening at all.

From the article: “What makes the truck right-turn incidents all the more tragic is the refusal of lawmakers to require side guards,” [Stefani] said. “Sadly, to make them mandatory here, there needs to be a tipping point where enough people are fed up with the deaths.”

The U.S. continues to lag far behind European countries like the U.K., which have adopted stricter safety regulations and implemented the side guards that Jay mentions. Will Chicago’s City Council soon do the same? It seems obvious that they should.

Read the Reader’s complete coverage here.

Will insurance rates rise in 2017?

September 27, 2016 by Levinson and Stefani Leave a Comment

Rising insurance premiums are as inescapable as they are inevitable. Only now are we getting a better picture of what that means, exactly.

You’ll recall that last year Illinois-based insurance companies State Farm and Allstate bumped up their premiums by relatively significant margins: more than 5 percent. At the time, both companies justified the rate hike by citing a spike in auto crashes and a higher number of insurance claims.

GEICO bought into that logic too. The company that touts itself as a cheaper insurance option increased insurance rates by 7 percent. But as it turns out, there may be more to it than simply jumping on the insurance bandwagon. Crain’s reported today that growth at the Maryland-based company took a dip in 2015, prompting the corporate bosses to find ways to make up for the shortfall. This all came to further light this morning: GEICO boosted auto premiums by just over 6 percent in 2015—$390 million in 2015 up from $367 million in 2014. That’s a little less than the 12 percent in 2014 and 17 percent in 2013.

This latest discovery is perhaps a sign that consumers are finding other modes of transportation, which is good. But if you take into account that fatalities figure prominently in recent traffic reports—like the ones from the National Highway Traffic Safety Administration—insurers may be on the verge of exploiting the exploitable to make up for lost financial ground. States like Illinois, for example, are on pace to have one of the deadliest driving years on record. The NHTSA also reported that traffic deaths rose 7.7 percent in 2015 compared to the rate in 2014.

In an article for CNBC back in February, investor Warren Buffet, who’s Birkshire Hathaway company owns GEICO, said that he believed a factor in all of this is distracted driving, “which was listed for about 10% of the deaths in 2014,” he said. “The frequency of accidents, the frequency of deaths per hundred million vehicle miles went up quite significantly in 2015, and that’s the first time in a long time.”

Business is down and crash rates are up. That may mean your insurance policy is about to go up next.

Obama administration unveils Federal Automated Vehicles Policy

September 20, 2016 by Levinson and Stefani Leave a Comment

The road to autonomy is paved in legal regulations. So sayeth the Obama administration, which on Monday unveiled the first regulatory standards related to automated vehicles and the technology that powers them.

In a press release, the White House pointed to the Federal Automated Vehicles Policy, described as a plan to facilitate the introduction of self-driving technology into mainstream consumerism. The Department of Transportation will soon issue a federal policy guide for “the responsible testing and deployment of automated vehicles,” a package comprised of four sections. According to the release, those sections are:

Vehicle performance guidance for manufacturers, developers, and other organizations outlining a 15 point “Safety Assessment” for the safe design, development, testing, and deployment of highly automated vehicles, including a request that automakers sign and submit this safety assessment to certify that their vehicles are ready for public roads.

Model for state policy that presents a clear distinction between Federal and State responsibilities and recommends policy areas for states to consider with a goal of generating a consistent national framework for the testing and operation of automated vehicles while leaving room for learning and valuable state discretion.

Current regulatory tools that National Highway Traffic Safety Administration (NHTSA) can use to aid the safe development of automated vehicles, such as interpreting current rules to allow for appropriate flexibility in design, providing limited exemptions to allow for testing of nontraditional vehicle designs, and ensuring that unsafe automated vehicles are removed from the road.

New tools and authorities that NHTSA could consider seeking in the future to aid the safe and efficient deployment of new lifesaving technologies and ensure that technologies deployed on the road are safe. For example, NHTSA is seeking public feedback on whether to consider pre-approving novel automated vehicle technologies before they are allowed on public roads and whether to create a new Federal safety standard for revolutionary vehicle designs, such as ones that do not require a steering wheel or gas pedal.

The NHTSA also plans release a final enforcement guidance bulletin to clarify how its recall system applies to automated vehicle technologies.

The proposal is the most significant signal yet that the government has all but embraced the idea that self-driving cars will soon play an important role in the future of transportation and improving road safety. It’s also a signal that federal regulators are beginning to lay the groundwork for a system intended to keep a mild reign on the tech companies working with nascent technologies.

The White House notes that this is just “the first step” in supporting the safe and responsible development of new tech. Other topics the administration expects to tackle: Cyber Security Best Practices and a prosed rule that would mandate that all new vehicles have technologies capable of transmitting and receiving basic safety messages.

Boston inks deal to test self-driving cars. Is Chicago next?

September 14, 2016 by Levinson and Stefani Leave a Comment

The folks in Bean-town have peered into their crystal balls and one of the things they’re seeing is self-driving cars. The Boston Globe reported this morning that the city has struck a deal with a group of unnamed tech companies and manufacturers to test autonomous vehicles, beginning in a matter of months. Coincidentally Uber is set to unleash a fleet of autonomous cars (though this particular fleet will include an actual human behind the wheel for safety reasons) on the streets of Pittsburgh later today.

More from the Globe: “If this technology is going to yield benefits for the consumer, we want to make sure it works in the city of Boston,” said Chris Osgood, the city’s chief of streets. “We want to make sure we’re doing our due diligence and understanding what the implications are. How do we set up the right policies and take the right approach to this so it’s going to have the biggest net benefit?”

Counting Pittsburgh, it seems Boston is the second major city in recent months to commit to exploratory testing. Could Chicago be the third? Here are four reasons why it might.

The mayor is a big Uber fan

His brother, Ari, is also a big investor. Back in 2014 reports started swirling that Rahm’s younger brother stood to make nearly a billion dollars from his Hollywood agency’s dealings with the popular ridesharing company, which is venturing into autonomous territory. On top of that, David Plouffe, a strategist to then-Senator Obama’s presidential campaign in 2008 and former White House mainstay, now serves as one of Uber’s most prominent strategic advisors. The mayor has also favored rideshare-friendly legislation that keeps it at a premium in the Windy City (much to the consternation of the highly regulated limousine and cab service industry). Now that Uber has unleashed self-driving cars on the roads of Pittsburgh, it’s easy to imagine the company heading further west to a place that fits its self-driving test criteria and where it’s ostensibly been feeling the love.

Chicago has one of the largest populations in the country

This goes beyond the Uber and ridesharing craze. Chicago is a major city with a major population—nearly 2.7 million people to be more precise. That’s good enough for third on the national charts, behind only Los Angeles and New York. A study in 2015 by Zen99, a resource for folks who depend on 1099s, found that Chicago ranked ninth out of 70 U.S. markets that were favorable for ridesharing users. That’s not counting the untapped potential of autonomous ridesharing either. One could assume that a city that loves alternative modes of public transportation is bound to look closer at the ways self-driving cars impact the broader economy, both commercially and otherwise.

Like a good neighbor, State Farm is here

So is Allstate, based in Northbrook. They’re two of the biggest auto insurance companies in the country and the insurance industry has been wrestling with the notion that self-driving cars may reduce crashes and potentially eliminate them altogether. That poses big questions for State Farm, Allstate, Nationwide, and others, which will soon need to figure out how they’re business plays into the bigger picture. I’m not saying that either will be making a public relations push in favor of self-driving cars, but what better opportunity to do some experimentation while the guinea pig is rummaging around in your own backyard? Let’s assume the worst: self-driving cars get into tons of accidents. Maybe a public relations push on behalf of the insurance companies isn’t so far-fetched after all.

It’s the economy, stupid

The reality is this: Autonomous cars are the future of transportation. It’s not a matter of “if” but “when.” Rahm and others like to refer to Chicago as the Silicon Valley of the Midwest. If we’re to take that declaration at face value, we need to make the most of our opportunities, which could have huge economic benefits. Tech is big business and presenting Chicago as a tech-friendly hub feeds the narrative while drawing new talent to the city. Being labeled as a pioneer of autonomous transportation and the legislation that governs it has the potential to be hugely beneficial in the long run. I can already imagine Tim Cook pulling up to Apple headquarters in the West Loop. In a self-driving car no less.

Congress to NHTSA: Look into car hacking

September 13, 2016 by Levinson and Stefani Leave a Comment

Members of Congress have formally asked the National Highway Traffic Safety Administration to convene an industry-wide effort to prevent possible hacks on the computer systems in vehicles, raising the spotlight on the challenges that regulators face as technology advances and cars become even more reliable on automated programming for everyday functionality.

This latest development is one of several attempts to quash concerns that lawmakers first broached in July 2015 after an article in WIRED magazine chronicled the experiments of two hackers-turned-software engineers, who took control of a 2014 Jeep SUV by accessing its computer console from a remote location.

In that case, the hackers were able to gain control of the Jeep’s on-board diagnostics port (OBD) and steer it off its course. Automakers have been required to install OBDs in all vehicles since 1994 to test for emissions compliance. With computer software and hacking becoming increasingly sophisticated, coupled with an already-vulnerable system, congressional leaders are trying to get ahead of the curve.

Leading the charge is U.S. House Energy and Commerce Chairman Fred Upton. Upton is asking the NHTSA to report back in October with any progress and to make NHTSA staff members available to speak on the issue. The NHTSA has said that it plans to roll out a series of proposals to ensure that automakers comply with future regulations, though the timeline remains a work-in-progress.

For now, it looks like Congress is taking a more public stand to force the issue. The U.S. Justice Department has already begun the process of constructing a threat analysis team to look over the national security implications of car hacking, and this latest request from Upton comes on the heels of a report in March by the Federal Bureau of Investigation that cited a warning that cars were “increasingly vulnerable” to hacks by outside parties.

Partner Jay Stefani appointed to AAJ’s Sole Practitioner & Small Firm Section

September 1, 2016 by Levinson and Stefani Leave a Comment

Levinson and Stefani is pleased to announce that Jay has been elected Parliamentarian for the American Association for Justice’s Sole Practitioner & Small Firm Section, serving a one-year term for 2016-2017.

The Solo Practitioner & Small Firm Section is comprised of attorneys that focus on improving the stability of solo and small firms around the country, including how to market their practice and gain visibility by taking advantage of resources like blogging and social media.

Members pay particular attention to the use of technology as a way to increase productivity and navigate the financial obstacles of running a business. The group also addresses staffing issues, employee benefits, and law firm management.

This is one of four AAJ committees Jay serves on. He also sits on the Trucking Litigation Group, the Motor Vehicle Collision, Highway and Premises Liability Section and the Nursing Home Litigation Group. He also serves as a member of the Trucking’s Litigation Group’s Side Underride Guard Task Force, advocating for improved trucking safety across the country, most notably here in Chicago.