Hill Meetings Deliver Momentum on Tort Reform

Last week, the American Trucking Associations assembled industry leaders from Groendyke, Werner, and Old Dominion Freight Line for a series of Capitol Hill meetings focused on an urgent priority: stopping lawsuit abuse that is driving up costs for trucking and the families we serve.

ATA Chairman Greg Hodgen led the group in meetings with both the House and Senate Judiciary Committees, which have jurisdiction over the bills that would reform the broken judicial system. Trucking leaders had productive discussions with Republican and Democratic staff, providing an overview of the issue and plotting a path forward for solutions. Notably, House Judiciary Chairman Jim Jordan (R-OH) offered his unwavering support for ATA's efforts to restore justice and fairness to the courts-and committed to helping pass legislation that would accomplish this goal.

Why this matters.

The cost of lawsuit abuse hits the trucking industry particularly hard. "Nuclear verdicts" and other runaway awards are increasingly common, and the financial consequences are severe. Commercial insurance rates-one of the biggest operational costs for motor carriers-have risen for the past 54 consecutive quarters. Between 2010 and 2020, truck insurance rates increased by nearly 50 percent per mile. Motor carriers of all sizes are impacted, but the small fleets that make up the overwhelming majority of the industry carry an especially heavy burden. Over 90% of motor carriers operate 10 trucks or fewer.

The economic pain is not confined to the trucking industry, however. American consumers feel it too in the form of a "hidden tort tax" that adds $4,207 per household per year. Nationwide, this adds up to $529 billion in annual tort costs, which ultimately show up in higher prices for groceries, fuel, medicine, building materials, and other everyday goods that move by truck. Left unchecked, that annual toll is expected to approach $1 trillion by 2030.

What we discussed.

The message ATA brought to Capitol Hill was clear: if policymakers want to protect small businesses and promote affordability, they can no longer ignore the exploitation of the legal system that is one of the primary drivers of rising costs.

Congress does not need to start from scratch. There is already a practical legislative framework that would curb the worst abuses, such as:

• The Staged Accident Fraud Prevention Act, which would make it a federal crime to purposefully crash into a commercial motor vehicle.
• The Forum Accountability and Integrity in Roadway (FAIR) Trucking Act, which would halt the abusive practice of "forum shopping."
• The Lawsuit Abuse Reduction Act, which would mandate sanctions for filing frivolous lawsuits.
• The Litigation Transparency Act, which would require disclosure of third-party litigation funding agreements; and
• The Protecting Our Courts from Foreign Manipulation Act, which would force the disclosure of foreign persons and entities investing in litigation in the U.S.   

States have led by example. In Florida, for instance, over three dozen auto insurers filed rate decreases since the Sunshine State passed comprehensive tort reform in 2023. According to Sentry Insurance, that has resulted in an estimated 14.5% reduction in property and casualty insurance costs, saving the typical Floridian hundreds of dollars per year.

Nationwide, ATA's advocacy has been instrumental in passing tort reform legislation in 15 state capitals, including Tallahassee, with more victories on the way. Ultimately, however, the interstate nature of trucking requires federal solutions.

Important progress.

The most significant outcome of these meetings-and a major step forward for our advocacy-was Chairman Jim Jordan's agreement to host a House Judiciary Committee roundtable and hearing focused on the need to stop lawsuit abuse targeting the trucking industry.

This is a consequential development because roundtables and hearings drive understanding, build bipartisan awareness, and create the momentum needed to move legislation. The Judiciary Committee is the central forum for examining how litigation abuse distorts markets and raises consumer prices. A hearing that connects lawsuit abuse directly to supply chain stability and affordability gives lawmakers a clear, actionable path forward. This attention from Congress gives ATA an unparalleled opportunity to put real stories on the record and explain how lawsuit abuse affects safety investments, hiring, equipment upgrades, and the prices consumers pay every day.

We are grateful to Congressman Jordan for listening to the concerns of America's trucking professionals and for taking action to elevate this issue. His willingness to lead is an important recognition that lawsuit abuse is not just a trucking problem; it is an economic problem affecting families in every district.