trucking litigation

ATRI Says 2020’s Top Research Priority is Small Settlements

July 5, 2020 by Levinson and Stefani Leave a Comment

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The 2020 Top Research Priorities list, developed in March by the American Transportation Research Institute’s Research Advisory Committee, has just been approved by the group’s Board of Directors. This year’s research priorities include vehicle-miles-traveled taxes and mileage-based safety, to name a couple. At the top of the list–the impact of small settlements.

ATRI’s Research Advisory Committee chose research topics that would analyze issues surrounding infrastructure, workforce, and legal aspects of the industry and that also match leading concerns listed in ATRI’s annual Top Industry Issues Survey. The RAC is comprised of industry executives, academics, government officials, and labor union leaders.

2020’s top research priorities include:

-The Impact of Small Settlements on the Trucking Industry — This study would review legal settlements under $1 million and focus on the fleet responses of each incidence, frequency of these kinds of cases, and the consideration of verdicts versus settlements. This will serve as a follow-up to ATRI’s nuclear verdicts analyses.

-Rethinking Mileage-Based Safety Metrics — Research in this area would look at new ways of measuring safety performance outside of traditional rates per million miles traveled, as progressing trends within the industry, along with E-commerce, have brought many changes to fleet business models and route lengths.

-Owner-Operators and Independent Contractors in the Supply Chain — This study would assess roles of owner-operators and independent contractors regarding their operational and financial differences in an effort to create better policies, as both roles play large roles in supply chains. Still, independent contractor models have the potential to see drastic changes within legislative actions at the state-level.

-Cost-Benefit Analysis of Vehicle Miles Traveled Taxes — In this research, the ATRI would examine Vehicle Miles Traveled tax deployment with a focus on implementation and enforcement costs, evasion, and both state and local level implementation challenges.

-Impacts of Rising Insurance Costs on Industry Operational Costs — This study would look into fleet resources and decision-making methods in an effort to better understand how fleets handle cost increases. Research would include reprioritizing tech investments and “cannibalizing other cost centers, such as safety.” This comes as a response to continual increases in industry insurance costs, as documented in ATRI’s annual Operational Costs of Trucking research.

In regards to the top priority, ATRI plans to have nuclear verdict research available by June, according to the group’s president, Rebecca Brewster.

“Given the work we’ve been doing on nuclear verdicts, I think the sense among the Research Advisory Committee members is, while that is a big issue, oftentimes, just in terms of frequency, it’s these smaller settlements that are really impacting our businesses,” said Brewster. “They really felt, following a similar methodology, we could pursue looking at these small settlements so we really would cover the landscape between the two studies on all that’s going on on the legal side of things and how that’s impacting our industry.”

ATRI’s research is set to continue progressing during the current pandemic while taking into account the impact of COVID-19 on the trucking industry as a whole. ATRI has already released research on the effect of the coronavirus on bottlenecks, truck activity, haul lengths and detention times. In regards to trucking activity, ATRI found that freight activity has declined, even though it spiked across six states at the beginning of the pandemic. The data from February and March show an uptick in initial truck activity as the industry responded to increased demand for essential goods, but also show a decline in April as stay-at-home mandates shut down many sectors of the nation’s economy.

For haul lengths and congestion, ATRI found that shorter hauls, along with lighter traffic, are some outcomes from the virus’s impact on the trucking industry. Before the pandemic, 32% of truck trips were longhaul, while that number dropped to 22% during the time of COVID-19.

The effects of the virus will most likely be reflected in the other research done by ATRI, including the list of top industry concerns, as well as the truck bottlenecks report.

“I can’t imagine that we won’t continue to do research around COVID-related impacts,” Brewster explained. “Even if we’re not directly studying a COVID impact, I think the fact that we’ve been living through this pandemic will bear itself out through a number of our studies going forward.”

5 of 8 Suspects Plead Guilty to Staged Truck Crashes

March 24, 2020 by Levinson and Stefani Leave a Comment

Five out of eight defendants in an investigation regarding staged truck accidents in New Orleans–which brought fraudulent lawsuits–pleaded guilty in late January, an act which brought further scrutiny upon the remaining defendants awaiting their trials.

Those three, including the alleged ringleader, were all involved in the money fraud scheme, but were not part of the plea bargains. However, one passed away in 2019.

Of this group, two drivers and three passengers in two separate accidents involving 18-wheelers plead guilty before US. District Judge Eldon Fallon to both conspiracy and wire fraud.

In the plea agreements filed in the U.S. court in the Eastern District of New Orleans, four of the defendants confessed–Lucinda Thomas, 63; Mary Wade, 55; Judy Williams, 59; and Dashontae Young, 25, all from Houma. These four left Houma and ended up in an accident in June 2017 near the Danziger Bridge.

Larry Williams, 46, a fifth defendant from New Orleans, admitted he was also a part of a staged accident six days later with a truck in the same area.

Additionally, another two individuals named in the indictment–Damian Lebeaud and Mario Soloman–are currently under federal investigation for their involvement. Two attorneys are also under investigation, according to court documents.

Labeaud was described by federal investigators as conspiring directly with “Attorney A” before and after the fraudulent accidents. Both incidents in the indictment were followed by lawsuits filed by attorney Daniel Patrick Keating.

Group members filed lawsuits after the stagings occured in order to “defraud and obtain money and property from insurance and trucking companies.” Some were seeking up to $1 million in damages.

A local news station’s investigative series dubbed “Highway Robbery” found that Attorney A is in fact Keating–based on his phone number being the one cited in court filings and by federal authorities as the one Labeaud would call regarding the accidents.

“Attorney A and Labeaud met at a restaurant in New Orleans,” said the U.S. Attorney’s Office. “During their meeting, Attorney A and Labeaud agreed that Attorney A would pay Labeaud $1,000 per passenger for staged and legitimate accidents with tractor-trailers.”

In addition, the indictment showed that Thomas had undergone neck surgery because “Attorney A” said she “would get more money through the lawsuit if she had the surgery.”

In the pleas filed on January 30th in federal court, the first staged incident is cited as occurring on June 6th, 2017, followed by a second on June 12, 2017. Both accidents took place in New Orleans, and some of the scammers said they were treated by doctors “known to the grand jury at the direction of one of the attorneys.”

According to the plea agreements, those pleading guilty faced a $250,000 fine and up to five years in prison.

Covenant Transportation Group had a truck involved in one of the staged accidents. The group’s representation apparently spent months investigating the fraudulent incident, scouring cell phone and cell tower records, analyzing dash cam and police body cam videos, and researching other documents that they ended up releasing to the FBI.

Over three months, the transport company’s team worked to find substantial evidence, eventually gathering enough to file documents in the civil suits claiming fraudulent activity.

This isn’t the only incident of its kind, either. Throughout 2019, New Orleans trucking fleets were warned about multiple suspicious incidents taking place after a notable “fake accident” lawsuit against Whitestone Transportation out of Mississippi.

In a series of at least 30 different suspicious accident cases, many similarities have been noticed. Almost all of these staged accidents take place around New Orleans, include multiple passengers in a claimant vehicle, involve sideswipe allegations against commercial vehicle trailers, have minimal damage to the claimant vehicle, have little or no damage to the trailer, and involve a commercial vehicle driver who either denies the crash or is unaware of it.

Regarding the most recent indictment, the U.S. Attorney’s office wrote in a press release: “Attorney A knew Labeaud was staging an accident and Attorney A paid Labeaud for at least 40 illegally staged automobile accidents. In addition, Labeaud and Attorney A would discuss the staging of accidents before they happened.”

Navistar Engine Lawsuit Approved at $135M

March 23, 2020 by Levinson and Stefani Leave a Comment

CHICAGO – A $135 million settlement will now be paid to resolve claims that Navistar sold defective truck engines knowingly.

A federal judge in the city granted final approval of the settlement last month between Navistar Inc. and a court-certified class of around 45,000 plaintiffs.

This settlement benefits truck drivers, particularly, who leased or purchased a MaxxForce 11- or 13-liter engine-equipped vehicle from between the 2011 and 2014 model years. These engines were certified to meet EPA 2010 emissions standards without selective catalytic reduction technology.

This settlement has been one of the the most prominent legal battles for Navistar, a company that builds international trucks. The issue originates from the leasing and sale of over 66,000 trucks with engines equipped with defective exhaust gas recirculation (EGR) systems–which are meant to control nitrogen oxide emissions.

Allegedly, the defect causes engines to heat up much more than similarly-made engines, which leads them to break down more easily.

The plaintiffs claimed that they would not have purchased the vehicles, or would have paid much less, should they have known about the potential defects ahead of time. Because of this, Class Members, along with the plaintiffs, argued that they had sustained financial injury.

When the settlement was made in May of 2019, U.S. District Court Judge Joan Gottschall rules that it was “fair, reasonable, and adequate.”

Lyndi MacMillan, director of business communications for Navistar, said the company looks at the settlement as a way to move forward. “Navistar is pleased with the court’s decision to approve the proposed $135 million class action settlement,” she said. “The settlement is a major step in helping us move past the MaxxForce 1-liter and 13-liter EGR engines issues in the U.S.”

According to the settlement, class members are able to select a “no questions asked” payment of up to $2,500 per truck, a $10,000 rebate off of the price of a new truck, or out-of-pocket costs per truck related to the EGR setup of up to $15,000 total. The agreement has set aside $85 million in cash with another $50 million for the rebate program.

Class Members must file a valid claim by May 11, 2020 to benefit from the settlement.

Who is eligible?

Any consumer who purchased or leased a 2011 to 2014 model year vehicle which used a MaxxForce 11- or 13-liter engine with specific certification meeting EPA 2010 emission standards without selective catalytic reduction tech can benefit from the settlement.

To see if their vehicle qualifies, consumers can check their VIN numbers.

What is the award?

Consumers can receive up to $2,500 in cash or up to $10,000 in rebates per affected vehicle. Additionally, Class Members will get a certain monetary amount for each month that they owned or leased the affected vehicle.

Limitations for the cash option:

-Model year 2011: $26.59 per month

-Model year 2012: $29.07 per month

-Model year 2013: $33.33 per month

-Model year 2014: $39.06 per month

Limitations for the rebate option:

-Model year 2011: $106.36 per month

-Model year 2012: $116.28 per month

-Model year 2013: $133.32 per month

-Model year 2014: $156.24 per month

There is an additional third option from which Class Members may be able to benefit if they choose to forego cash or rebates. The “Prove-Up” option allows Class Members to collect up to $15,000 in covered costs per vehicle owned or leased. These costs include repairing or replacing primary components, or repairing or replacing a secondary component that takes place within 30 days of the first.

The primary components include: the EGR Cooler and the EGR Valve. Secondary components include: the Lambda Sensor, Oxygen Sensor, Oil Centrifuge, Valve/Seat (Intake), Valve/Seat (exhaust). Valve Bridge, Cylinder Head (when accompanied by a Valve/Seat (Intake) and Valve Bridge repair), Turbochargers, Total Engine Replacement or Rebuild (with proven Turbochargers failure), Diesel Particulate Filter, and DOC/Pre-DOC.

In their court filings, the plaintiffs claimed that heavy-duty diesel engine manufacturers have worked to lower NOx emissions with EGR for years, and that all manufacturers, apart from Navistar, adopted selective catalytic reduction (SCR) to remove NOx from the exhaust after federal emission standards were lowered in 2010.

According to the court documents, Navistar tried to use EGR alone to comply with the rules, but MaxxForce engines prevented the setup to function properly. Since then, Navistar has implemented a new series of SCR-equipped engines.

2020 International Roadchecks Have Been Set for May Fifth Through the Seventh

February 18, 2020 by Danylo Terleckyj Leave a Comment

The Commercial Vehicle Safety Alliance (CVSA) an organization that includes both local and national government officials in North America, as well as industry representatives, will be conducting its International Roadcheck this year on May 5-7. The Roadcheck is an initiative meant to focus attention on the importance of commercial vehicle safety through a 72 hour marathon of roadside vehicle inspections throughout North America.

Inspectors will be checking both vehicles and drivers. They will conduct driver interviews, review documents, and check their records and inspection reports. Inspectors will also be looking for signs that a driver may be ill or fatigued, and whether the driver displays any signs of drug or alcohol abuse.

The inspectors will also conduct vehicle inspections to make sure drivers are operating a properly maintained rig. CVSA inspectors will be placing decals on vehicles on which no critical violations are found during their Level I or Level V inspections. However, inspections that do reveal critical violations may be rendered out of service until any violations are corrected.

Some drivers or motor carriers may decide they want to sit out the inspections all together. If you stay off the road in early May there is less of a chance of having to go through an inspection. However, not driving to avoid getting checked is not only unsafe it is also a bad business move.

If you’re not driving, you’re not earning. The purpose of running any efficient transportation business is to make a profit. With plenty of time and a warning of upcoming inspection dates, drivers and motor carriers can prepare to make sure all their logs, records, licenses, certifications, and vehicles are in proper order. A vehicle that doesn’t pass and is put out of commission cannot produce an income. A vehicle that has violations but is hidden from inspectors creates a great safety risk to professional drivers and to the public who use the roads. When a crash happens, you can be certain that there will be law enforcement, government officials, and lawyers scrutinizing over records and conducting inspections to find violations. In these situations, the risk of being put completely out of business is a real consequence that motor carriers can face. Even if the majority of a given company’s fleet is violation free, the part that is not can result in a shutdown.

Chances are that everything we see around us from goods, food, to furniture got to where it is at least in part by a truck. Commercial motor carriers are operating in a business that holds definite risks to public safety and property damage when people do not follow safety rules. If motor carriers or drivers do not follow safety rules and a crash occurs, government inspectors can cause the whole operation to be shut down. Crashes can also lead to insurance rates skyrocketing, making it too expensive to keep the business running.

Public safety is not the only concern when it comes to operating a commercial trucking company. IF a driver gets hurt as the result of an unsafe truck the company that driver works for can incur costs for worker’s compensation and will be short a driver. Additionally, vehicles are expensive. It costs money to fix or replace a damaged truck. Taken as a whole, it will certainly be less expensive to properly maintain a fleet of vehicles and follow all the proper safety rules rather than to cut corners. It’s much less expensive to stay safe than to recoup after a crash. Of course, your life and health are priceless.

New Federal Rules Will Help Trucking Companies Hire Safe Drivers

November 6, 2019 by Danylo Terleckyj Leave a Comment

The Federal government has adopted new policies aimed at taking unqualified truck drivers off the road. Registration is now open for the Drug and Alcohol Clearinghouse, a new substance abuse screening system for truckers that is scheduled to be operational early in 2020 . The Clearinghouse is a database that will keep track of drivers who have violated drug and alcohol policies in order to stop them from operating commercial vehicles. The Federal Motor Carrier Safety Administration anticipates that the implementation of this database will substantially reduce motor vehicle crashes involving heavy trucks.

The federal rules regarding professional truck drivers already prohibit drivers from getting behind the wheel when they test positive for illegal drugs. Of course, everyone knows that drunk driving is illegal. The Clearinghouse database will allow trucking companies to screen drivers applying for jobs to see if they have previously tested positive for drugs and are looking to get hired at a new place. Drivers can also lookup their own information once they have registered with the Clearinghouse themselves. Once registered, drivers can search for their own information for free. The database will include information about whether a professional driver has any drug or alcohol program violations and, if applicable, the status of their petitions to return to duty.

The new system is meant to act as a check on drivers who violate substance abuse rules follow the proper protocol to get back in to good standing, if possible, before they are allowed to keep driving. Drivers with commercial driver’s licenses, employers, law enforcement, medical review officers, and substance abuse processionals will be among the groups who will be authorized to access the Clearinghouse.

As for what should be reported to the database – Federal Statutes cover that:

Employers will report a driver’s drug and alcohol program violations. Medical review officers will do this as well. A driver does not need to register him or herself into the system for a medical review officer to enter a violation in the system. In fact, it is not mandatory for a driver to register. But, if an employer needs to conduct a full check on a driver, that driver will have to register. This means, drivers who don’t want to take part may not be able to get hired for certain jobs because perspective or current employers will not be able to conduct a full search on the database for their information. After January 6, 2019 a driver will have to be registered with the Clearinghouse in order for an employer to be able to conduct a full search on their record for new hires. Drivers who are registered will be able to give their consent to release drug and alcohol program information to employers. Also, when new information is added to their profile, drivers will receive notifications from the Clearinghouse in the mail or electronically.

Drug abuse is a problem that needs to be addressed with treatment and counseling. Allowing drivers to keep working when they have a substance abuse problem by slipping through bureaucratic cracks doesn’t help drivers who may need help to get sober. It obviously makes roads less safe.

In the computer age with so much information going digital, this just makes sense. Professional truck drivers have a difficult job. They have to work long hours, often by themselves, away from their families. They have to keep alert on the road and get enough rest to do so. Drug use is a problem that poses a great risk to the health and safety of, not only professional drivers, but also everyone else who shares the road with them. Safety is on the roads is imperative. This database is likely the least intrusive way to keep records of drug and alcohol program violations so that employers know if they are sending a driver out on the road with the proper credentials.

Technology Could Stop the Rise in Fatal Truck Crashes

June 3, 2019 by Danylo Terleckyj Leave a Comment

Despite numerous safety regulations put in place to protect commuters, the number of traffic deaths involving semis and large trucks is on the rise. This puts travelers in passenger vehicles at greater risk on our nation’s highways. Rear end accidents are the most common types of crashes with big rigs going too fast and failing to stop in time to prevent crashes.

A lot of new cars are equipped with automatic breaking technology that assists drivers when they get too close to vehicles in front of them on the road. There has been no action in Washington and resistance by the trucking industry to require installation of automatic emergency breaking systems or warning signals in large trucks to try and decrease, if not eliminate, rear-end truck wrecks. Instead the death toll keeps climbing.

Driving a truck is hard work. Federal regulations allow truck drivers to work 11 hour shifts and they do. A trucker has to stay alert and focused on the road, traffic, and other potential hazards for extended periods of time. Add to that the time constraints that shippers place on getting their goods delivered on time and you have the potential for fatigued operators who might be driving too fast.

With trucks being the largest and heaviest vehicles on the road, it makes sense to require trucking companies to equip their rigs with sensor technology that will alert drivers when they are following too close to other vehicles. A big rig can destroy another semi in a high speed collision, and a truck driver may be more protected from injury in a big vehicle, but riders in passenger cars are at a much greater risk of injury or death from a rear-end collision from a truck. This is clearly a case where technology could help save lives.