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Bits & Pieces

June 2021

Happy Independence Day!

We’re well into summer, looking forward to the 4th of July and hopefully a more normal celebration.  It’s great to see folks getting out and about again.  Don’t tell the kids, but the back-to-school supplies are already stocked in the stores and waiting for them.  From our team to yours, have a great and safe 4th of July.  

See you next month!

CAB Live Training Sessions

Tuesday, July 13th @ 12p EST: Sean Gardner will present Grow Your Business with SALEs – Targeted Leads Generator. Target companies within your specific appetite with over 100+ filters. Search by insurance renewals, fleet size, commodities, and many other options. Don’t miss this one, we’ve also added several new enhancements!  Click here to register.

Tuesday, July 20th @ 12p EST: Mike Sevret will present, How to Update Motor Carrier Data.  In this session, we will go over how to update motor carrier data. From company names to power units, DataQs, and much more!  We get these questions often and we’re here to provide the answers.  Click here to register.

CAB subscribers can register for either or both sessions from our Webinars page or by logging in and clicking the link below. https://subscriber.cabadvantage.com/webinars.cfm

As a quick reminder, last month’s sessions,  Intro to CAB: Flow and Navigation. and BASICs Calculator: Tips & Tricks have been uploaded to our Webinars Page if you missed them!  

Follow us at CAB Linkedin Page  CAB Facebook Page

CAB’s Tips & Tricks: CAB List™ adds a new alert feature

There is now a total of 8 alerts available in CAB List™.  In addition to alerts for BASICs, Crashes, ISS, Inactive Carrier, Out of Service, Inspections, and Safety Rating, we have added Pending/Canceled Policies.  We encourage you to add motor carriers to your CAB List™ to monitor them during the policy period for improvement or otherwise.  As with the previous alerts, you are not automatically subscribed to the alerts.  You need to click the “plus” button next to the alert you would like to add, see below.

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By subscribing to the Pending/Canceled Policies option, you will be alerted when:

Pending Cancelation – policies with a cancel date within the next 5 days. 

Canceled – policies with a cancel date in the past 5 days and with either a canceled or replaced close action, that were not replaced 

You have the option to be notified when the policy Was Canceled and/or when the policy Is Pending Cancellation, see below.

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We encourage you to familiarize yourself with this new alert as this is a great tool for monitoring policy filings for customers and prospects.  

THIS MONTH WE REPORT:

Drug and alcohol violations in 2021 outpacing 2020 numbers through first quarter: The Federal Motor Carrier Safety Administration’s (FMCSA) Drug and Alcohol Clearinghouse has now been in effect for a year and a half, and through the first quarter of 2021, drug and alcohol violations are on pace to be higher than in 2020, according to data from FMCSA available through March. As of April 1, there were more than 2.1 million users registered in the Clearinghouse, including truck drivers, fleet representatives, consortia/third-party administrators (C/TPAs), medical review officers (MROs), and substance abuse professionals (SAPs). While none of the regulations regarding drug and alcohol testing and reporting have changed, the Clearinghouse is starting to make it easier for fleets to conduct pre-employment screenings of their drivers.  For the complete article, click here.

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FMCSA formally delays implementation of electronic med cert rule…again:  The agency previously delayed the implementation date of its Medical Examiner’s Certification Integration final rule from June 22, 2018, to June 22, 2021. It will now delay the implementation until June 23, 2025. FMCSA says the delay will give the agency “time to complete certain information technology (IT) system development tasks for its National Registry of Certified Medical Examiners and to provide the State Driver’s Licensing Agencies (SDLAs) sufficient time to make the necessary IT programming changes after the new National Registry system is available.”  For more information on the Extension of Compliance Dates, click here.

Truck Cargo Thefts Up Significantly During Pandemic: CargoNet reported 1,502 total theft events for 2020. That compared with 1,106 in 2019 and 1,181 in 2018. These numbers include both cargo and vehicle thefts, which can overlap since oftentimes both are stolen. Thefts specific to cargo reached 1,059 events in 2020, compared with 758 in 2019 and 797 in 2018. Vehicle theft events reached 861 in 2020. Before that, they were 676 in 2019 and 810 in 2018.  Additionally, full truckload thefts increased by 25% in 2020.  Another big change last year was Texas overtaking California as the No. 1 state for cargo thefts.  The change was noteworthy because California held the top spot for decades. Both states saw cargo thefts rise in 2020; Texas just saw a larger increase.

ATA Truck Tonnage Index falls for the second straight month:  The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 0.7% in May after falling 0.6% in April. The index was 113.7 in May, compared to 114.5 in April. “Tonnage, despite falling slightly over the last two months, remains well above the lows of last year,” said ATA Chief Economist Bob Costello. “This is no small deal considering that truck tonnage fell significantly less than many other indicators during the depths of the pandemic in the spring of 2020.” Costello noted that gasoline shipments are helping keep tonnage elevated as demand for travel increases.  For more on this topic, click here.

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Can fleet safety execs defuse ‘Reptile’ litigation approach?  In a June 2020 report, the American Transportation Research Institute (ATRI) counted a 967% increase in the average size of verdicts, from $2,305,736 in 2010 to $22,288,000 in 2018.  The Reptile Theory approach is often used by the plaintiff’s bar. When deposing the truck driver involved in the accident, the line of questions from the attorney is aimed at getting the driver to claim ignorance of certain regulations or training they have received by their carriers.  For this reason and others, driver training is not a one-time event, argues Mark Murrell, co-founder of CarriersEdge, a provider of online driver training for the trucking industry. “An effective program instills in drivers and employees alike a sense that safety is not only a significant part of the company’s culture but also an ongoing process,” he said.  To learn more about this topic, click here.

DOT Reportable Crashes: Total and Per Million Miles Traveled:  This table shows, for each power unit range, the total number of different types of federally reportable crashes, and the associated rate per million miles traveled. Crashes include those that occurred during the prior 12 month period.  Power unit and mileage data come from the most recent data we have for each carrier. Only carriers that were active during the past 12 months are included.

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Attorney’s guilty plea is 23rd in widespread staged-accident fraud scheme: Just days after two guilty pleas in the widespread staged-accident fraud scheme in New Orleans, an attorney who played a role in the scheme also entered into a guilty plea, according to U.S. Attorney Duane A. Evans.  Attorney Danny Patrick Keating Jr. pleaded guilty to conspiracy to commit mail and wire fraud for his involvement in the case. Keating admitted to conspiring with Damian Labeaud and others to defraud insurance companies, commercial carriers, and trucking companies. Labeaud referred staged accidents to Keating and other New Orleans personal injury attorneys for $1,000 per passenger for accidents involving trucks and $500 per passenger for accidents not involving trucks. Keating reportedly advanced Labeaud thousands of dollars for the accidents and instructed Labeaud that he owed Keating a certain number of accidents based on the amount of money advanced. Keating admitted he knowingly paid Labeaud for 31 staged truck accidents. He represented 77 plaintiffs involved in the 31 accidents staged by Labeaud. He also settled 17 of the 31 staged accidents, earning his clients approximately $1.5 million. Keating faces a maximum term of five years in prison and a fine of $250,000 or twice the gross gain to the defendant or twice the gross loss to any person of the offense.  From CCJ News Brief.

Fleet owner sentenced for falsifying FMCSA documents: Michael Chaves, the owner of Rhode Island-based CAT Transportation, has been ordered to pay $424,598 in restitution to his victims and $207,270 to the Internal Revenue Service after using another person’s identification without his or her permission to falsify motor carrier registration documents. According to the Department of Transportation Office of Inspector General, Chaves was sentenced on March 10 to two-and-a-half years in prison, three years of supervised release, and a $1,000 special assessment. OIG says Chaves used another person’s identification to falsify Federal Motor Carrier Safety Administration documents to hide an affiliation with a company under a federal out-of-service order. He also generated false documents to show compliance with FMCSA rules and regulations, OIG adds.

CASES

Cargo

A cargo owner was precluded from asserting a direct claim against a motor carrier under the federal cargo claim regulations. The Northern District of Illinois held that 49 CFR 370.11, which obligates a carrier to salvage cargo, did not create an independent cause of action when the cargo owner claimed that the motor carrier did not properly salvage the cargo after the loss. Nexus Alarm & Suppression, Inc. v. MG Logistics, Inc., 2021 WL 2156451

Preemption was once again enforced in the Northern District of New York after removal of the case to federal court. The court permitted the plaintiff to amend the complaint to assert only a Carmack Amendment claim and rejected plaintiff’s claim that the case could still be remanded to state court even when only the federal claim remained. 3DPhoto Works, LLC v. YRC Worldwide, Inc. 2021 WL 2142971

Same held true in the Southern District of Texas where all state law claims were preempted. Good decision to see how the court addresses evidence in support of a prima facie case. The court held that the plaintiff produced enough evidence to show a prima facie case but that the motor carrier had properly limited its liability. Houston Granite & Marble v. DRT Transportation, LLC., 2021 WL 2366100

A default judgment was entered against a motor carrier in the Eastern District of California. When there was a contract which extended the potential damages to expenses and fees the plaintiff was able to increase the judgment beyond the actual damages to the goods. Just a reminder to underwriters to know what the contract says about damages. Sunteck Transportation Company, LLC v. TCSL, Inc., 2021 WL 2349889

Auto
While ultimately the plaintiff may not be successful, the Eastern District of Pennsylvania held that the plaintiff could amend his complaint to assert causes of action for recklessness, punitive damages and negligent hiring, retention, and supervision arising from a truck accident. The court noted that the standard for futility is the same as that on a motion to dismiss— evidence is not required to support the amendment as long as the amendment is done early in the case, before discovery. White v. Bush, 2021 WL 2255981

A plaintiff was unsuccessful in obtaining a judgment for attorney’s fees against a motor carrier’s insurer when plaintiff claimed that the motor carrier did not timely address the demand. The Southern District in Texas agreed that the plaintiff failed to comply with the statutory requirement that the insurer be given 30 days notice to address any claim. Puga v. NY Marine & Gen. Ins. Co., 2021 U.S. Dist. LEXIS 118798

The Appellate Court in Connecticut agreed with an insurer that a motor carrier’s policy provided no uninsured motorist coverage to an injured truck driver. As the vehicle was not registered or principally garaged in Connecticut the court looked to Tennessee law which did not require that coverage. Finley v. W Express, 2021 Conn App. LEXIS 216

Reminder that you can seek reimbursement for payments made under the MCS-90. The Central District in California granted a default judgment to the insurer for the payments made on behalf of the motor carrier, also agreeing to a declaration that there was no coverage under the policy. As the motor carrier is defunct, collecting will be difficult we suspect. A One Commer. Ins. RRG v. Le, 2021 U.S. Dist. LEXIS 119185

A motor carrier’s defense of contributory negligence when the driver of the vehicle it struck failed to secure a child passenger in a child seat failed in the Supreme Court of Arkansas. The court, in answering a certified question, concluded that a statute which held that failing to use a child-safety seat was not a negligent act and therefore could not be used to compare the injured plaintiff’s fault to the fault of the motor carrier. Edwards v. Thomas, 2021 Ark. 140

I was just talking to one of our subscribers about the tangled web that is presented when there are multiple trucking operations operating with similar ownership/relationships. The Western District of Pennsylvania agreed that an injured police officer could amend his complaint to add in additional corporate defendants which he claimed may be alter egos of the target defendant and therefore liable for the damages he suffered. It is important to pay attention to that exposure as defense costs, and possible indemnity exposures, can grow with interrelated entities. Fennell v. Tacu, 2021 WL 2338737

In the 11th District Court of Appeals in Ohio the court reversed a decision dismissing a complaint against the truck broker for negligently hiring a motor carrier who injured the plaintiff. The court acknowledged the split of authority on whether these claims were preempted by FAAAA but determined that the claims were subject to the safety regulatory exception under FAAAA. Quinones v. Ladejo, 2021 WL 2413329

While the court in the Eastern District of Missouri agreed that the plaintiff had not alleged a claim for negligence per se when she could not point to a statute which supported a duty of care, the court allowed other causes of action, for negligent hiring, retention and training to stay. The court also held that under Missouri law, punitive damages are permissible where a trucking company fails to observe motor carrier regulations and industry standards which result in injury. Allegations in support of a reptilian theory against the motor carrier were also permitted to proceed, with the court noting that the defendant would have to wait till trial to seek to exclude those allegations. Sanford v. K&B Transportation, Inc., 2021 WL 2588902

Plaintiff was unable to continue to sustain a claim against a motor carrier when the plaintiff struck the motor carrier in the rear. Plaintiff’s claim that he only looked down for a second to check his cell phone and therefore the motor carrier must have slowed down improperly, or changed lanes impermissibly failed. The Western District of Texas granted summary judgment to the motor carrier. Flambures v. McClain, 2021 WL 2444951

A plaintiff’s claim against the trucking company for damages in a two truck accident, which was based upon vicarious liability, was permitted to stand in the Western District of Oklahoma. However, as the defendant conceded vicarious liability if the driver was acting within the scope of his employment, claims for negligent training, retention and supervision were not permitted to proceed. CTC, Inc. v. Schneider National, Inc., 2021 WL 2295512
A plaintiff was unsuccessful in seeking an adverse inference when the motor carrier disposed of man

of its required DOT documents, including driver and vehicle records. The Middle District of Pennsylvania held that the plaintiff had not proven that the defendant was aware of the pending litigation when he disposed of the records. The court also addressed what information could be admitted into evidence to support the claims that the motor carrier was negligent in following regulations. This is a good case to read to understand how much of the data can come into a case. The court also agreed that the determination by one of the motor carriers that the accident was preventable should not be admitted into evidence. Shelton v. Gure, 2021 WL 2210989

The evaluation of expert testimony is often critical to how the case will be presented at trial. Understanding how the courts will dig deep into the process and procedures of the experts is important. With the use of data and algorithms as a critical piece of reconstruction, this decision in Georgia is an interesting read. The Southern District of Georgia considered whether the designated software program could be used to evaluate the expected stopping times for the rear end truck hit. The court determined that a second expert was qualified to testify on hiring and retention in the trucking industry and whether the driver’s operation of the vehicle met industry standards. The 2 decisions addressing various discovery experts are available. Tuk v. U.S. Express, Inc. 2021 WL 2433800 and 2021 WL 2433799

The Northern District of Ohio held that a plaintiff could not pierce the corporate veil of one corporation to reach its sister corporation. Even though the trucking company and the leasing company had common individual shareholders neither corporation has any ownership interest in the other corporation. The case against the leasing company was dismissed. A good case to remind you that it is important to understand the relationship between related entities as they are often pulled into cases which are brought against other related companies. Hay v. Shirey, 2021 WL 2043151. In a related decision the court agreed that there should be a cap on noneconomic damages as the plaintiff had not met the statutory requirements to defeat the mandated cap. 2021 WL 2210565

The non-trucking policy was held applicable when the accident occurred at a time when the truck driver was driving the truck to his acquaintance’s house for repairs. The Court of Appeals in Georgia held that as the policy did not define the term “personal use.” or reference the FMCSA regulations in outlining the scope of its coverage, the lower court did not err in finding that the driver was not driving the truck for business reasons at the time of the accident. American Southern Insurance Co. v. SPN Trans, LLC, 2021 WL 2252073

This was a first for me. The 5th Circuit Court of Appeals in Louisiana agreed that a motor carrier was not liable when its stopped truck was toppled by a tornado and fell on the plaintiff’s vehicle. The plaintiff’s argument that the truck, which was stopped at the time, should not have been on the roadway at all due to the inclement weather, was not accepted by the court. Smith v. Great American Insurance Co., 2021 WL 2133047

The First Circuit Court of Appeals in Louisiana reversed a grant of summary judgment in favor of an insurer, concluding that the insurer had not properly cancelled the motor carrier’s insurance policy for non-payment of premium. Because the notice indicated that the policy “will be cancelled” and not that the policy was cancelled the notice was not clear. Jarvis v. Foremost Express, 2021 WL 2213315

The Supreme Court in Illinois held that it would be inequitable to allow recovery of additional sums against a settling tortfeasor following a trial on the liability of all. The court agreed that the Joint Tortfeasor Contribution Act did now allow allocation of those additional sums on a pro rata basis on a theory that the additional sums was uncollectible from a defendant who had already settled. Roberts v. Alexandria Transportation, Inc., 2021 IL 126249

A truck driver was unsuccessful in his claim against a shipper for improperly loading a shipment which resulted in an overturn and injury to the driver. The Western District of Kentucky continued to support the Savage rule, that a shipper was responsible only for a latent defect not discoverable by the driver. Murrah v. TDY Industries, 2021 WL 24606612

When the plaintiff would not concede that the injuries suffered from a truck accident would not equate to a judgment of more than $75,000, even when punitive damages were alleged, the case was remanded back to state court. The Northern District of Alabama held that it was the defendant’s burden to show that it was facially apparent from the complaint that the damages would exceed the limit, something it could not do. Crooks v. Murrow’s Transfer, 2021 WL 204943.

The Southern Division in Alabama found the same result for the same reasons. Williams v. Yakima, 2021 U.S. Dist. LEXIS 115110

Partial summary judgment was granted to the motor carrier in the Eastern District of Louisiana. When the motor carrier admitted vicarious liability the plaintiff could not assert a direct/independent negligence cause of action against the motor carrier for its alleged negligent entrustment, hiring, training and supervision of the driver. Angelin v. Thrive Logistics, 2021 WL 2187926

The Middle District of Pennsylvania was not as favorable to the motor carrier. The court denied the motor carrier’s request to dismiss a punitive damages claim. The court held that allegations that the driver violated the law by speeding, driving while distracted, and consciously choosing to speed into an active construction zone was enough to support the claim at the early stages of the litigation. Calabrese v. Graham, 2021 WL 22902811

Worker’s Compensation
The Western District of Missouri held that a worker’s compensation insurer was entitled, as a matter of right, to intervene in a personal injury action brought against a trucking company for injuries to a roadside construction worker. It was interesting to note that the court reached this decision, in part, because a portion of the personal injury claim sought damages which were not subject to the worker’s compensation claim and therefore without its presence in the suit the insurer’s interest would not be protected. McGhee v. Khalilov, 2021 WL 2516086

May 2021

CAB Bits & Pieces May 2021

Welcome to the unofficial start of Summer!

Summer is pretty much upon us and things are at least heading towards normal…whatever that ends up being.  This is generally a big month for graduations and the like.  Enjoy the time with family and friends.  Keep in mind, Memorial Day is not just the unofficial start to summer, but an opportunity for us to honor those service members that have fallen in the performance of their military duties. 

Stay safe and have a great month!

CAB Live Training Sessions

Tuesday, June 8th @ 12p EST: Sean Gardner will present on Intro to CAB: Flow and Navigation.   This is a great session for new users or folks looking for a refresher.  Sean will provide an overview of the basic flow and navigation of the overall CAB environment.  Don’t miss out on this opportunity to learn about this powerful CAB feature. Click here to register.

Tuesday, June 15th @ 12p EST: Chad Krueger will present, the BASICs Calculator: Tips & Tricks.  The BASICs Calculator is one of our most powerful tools.  If you’re tyring to help your customer get a handle on their BASIC scores and identify areas of improvement, It’s quickly becoming a must-have resource.  Don’t miss out on this opportunity to learn more about the BASICs Calculator.  Click here to register.

CAB subscribers can register for either or both sessions from our Webinars page or by logging in and clicking the link below. https://subscriber.cabadvantage.com/webinars.cfm

As a quick reminder, last month’s sessions, Adding Motor Carriers to CAB List™ and CAB Advanced Training:m Tips & Tricks have been uploaded to our Webinars Page if you missed them!  

Follow us at CAB Linkedin Page  CAB Facebook Page

CAB’s Tips & Tricks: BASICs Calculator-Advanced Projections Simulator Line Graph

Based on user feedback, our Development Team has incorporated a very useful line graph when the Advanced Projections Simulations are run in the BASICs Calculator.  Users desired a visual representation of how the projections would progress via the projections.    This visual can be shared by producers, account executives, safety services, and others with policyholders, customers, and prospects to understand how their BASICs Scores and ISS Values are affected by the different variables available in the Advanced Projections Simulator.  Are you wondering how quickly a company’s scores could improve or drop out of Alert status?  Do you want to share how a company’s scores look 6 months out, based on today’s data using different variables?  Run a simulation and share it with them.  It’s a great discussion point and a wonderful way to provide a different perspective to your clients.

THIS MONTH WE REPORT:

“Significant threat” of cargo theft activity Memorial Day weekend: Cargo theft recording firm CargoNet says it expects a “significant threat” to freight transportation this upcoming Memorial Day weekend.  The firm reviewed data from 2016 to 2020 for the Thursday prior to Memorial Day to the Wednesday after. There were 143 events reported with an average of 29 events per year.  Additionally, activity for the 2020 Memorial Day weekend increased 35% from the same weekend in 2019. The stolen cargo in each event was worth an average of $308,308 – due in part to five thefts that exceeded $1 million in stolen goods.  CargoNet says 20% of recorded thefts occurred on Friday, and a significant number of thefts also occurred on Sunday (16%) and Monday (15%).  To continue this article, click here.

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Lawmakers introduce another bill to require speed limiters on larger trucks:  On May 25, Rep. Lucy McBath and Rep. John Katko introduced the Cullum Owings Large Truck Safe Operating Speed Act which would “codify into law a “speed limiter” rule that has been under consideration for more than a decade.”  The detail of the bill is not yet available, however, similar legislation introduced under the same name in 2019 proposed requiring speed limiter technology that would limit commercial vehicles to 65 m.p.h., or 70 m.p.h. Additionally, it would require the use of an adaptive cruise control system and an automatic emergency braking system. The legislation was introduced by former Senator Johnny Isakson.  The American Trucking Association (ATA) has reiterated its support for mandating speed limiter devices in a letter to the Secretary of the USDOT for vehicles over 26,000 lbs.  The ATA suggested a mandated speed limit of 60, 65, or 68 MPH.  The text of the previous bill is available here.

Best practices for controlling CSA maintenance violations: No fleet likes to be dinged for a CSA maintenance violation. If the violation is severe enough a truck can be taken out of service, fines can be levied, and a bad CSA score can scare shippers away.  The good news is there are some steps you can take to help reduce your number of CSA violations.  The nine steps include; pre-trip inspections, post-trip inspections, make repairs found during driver inspections, preventative maintenance inspections, scheduled preventative maintenance services, special maintenance programs, random inspections, and conducting root cause analysis.  Joe Puffs, the Vice President of Truck Technology and Maintenance for NationalLease, discusses the nine steps and provides insight regarding implementation.  To review the complete article, click here.

CAB Calculates Inspection Selection System Data:  Do you ever wonder how motor carriers fit into the ISS Categories of Pass, Optional and Inspect?  Below is a breakdown based on power units and ISS category, by total carriers and percentage.  This data is based on snapshot date of 5/11/21.  The first table shows, for each power unit range; the number of carriers with “safety” scores in the green, yellow, and red ranges, and the total number of carriers with a “safety” score or an “insufficient data” score. The second table shows the data as percentages, out of carriers with “safety” scores or out of all carriers as appropriate. ISS scores are as of the snapshot date listed at the top of the section. A carrier’s number of power units is from the most recent data we have for that carrier. Carriers with no or unknown number of power units are not included.

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Canada’s ELD mandate effective June 12 with one-year of educational enforcement:  The Canadian Council of Motor Transport Administrators (CCMTA) detailed the following on May 5th:  All jurisdictions remain committed to the federal Electronic Logging Devices (ELD) mandate, including third-party certified devices. Mandatory use of these devices will help ensure federally regulated commercial carriers operating in Canada including those that cross the border into Canada, will continue to drive within their hours of service. The use of ELDs will result in more efficient mechanisms to accurately log working hours.  The CCMTA developed an approach for jurisdictions to consider when adopting an enforcement strategy for the ELD mandate coming into force on June 12, 2021. Jurisdictions plan to support the mandate through a period of progressive enforcement without penalties including elevated education and awareness until June 12, 2022. The full message can be reviewed here.

New Hampshire state troopers discover 709 violations during CVSA International Roadcheck Event: During the 72-hour event from May 4th-6th, Troopers inspected a total of 356 commercial motor vehicles.  Troopers issued 25 CVSA decals to commercial motor vehicles that passed a Level I inspection where no critical violations were found according to the North American Standard Out-of-Service Criteria.  Troopers also discovered 709 violations, of which 125 were so severe that they created a condition where the vehicle or its driver was placed out of service.  In total, 56 vehicles were placed out of service for critical safety violations, while 29 drivers were placed out of service for violations including possessing drugs, possessing alcohol, driving while not physically qualified, failing to maintain a record of driving hours, not holding the proper class of driver’s license, operating after suspension, and for continuing to drive after being declared out of service. Troopers issued 63 citations and made one arrest as a result of commercial motor vehicle inspections.  Click here for the complete news release.

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Specific sleep apnea screening criteria cut in the latest draft medical examiner handbook:  The latest draft handbook for certified medical examiners no longer contains previously proposed details on screening and treating sleep apnea that were part of a prior draft. The withdrawal of those detailed recommendations alarmed some members of the Federal Motor Carrier Safety Administration’s Medical Review Board, which met May 20. “These medical examiners would be in a terrible position if we didn’t arm them” with the detailed tools needed to do their job, said board member Dr. Albert Osbahr. He is medical director for occupational health services at Catawba Valley Medical Center in North Carolina. “Industry doesn’t like it, but they’re not the ones doing the exam. It’s myself and colleagues who are on the firing line.” To read this complete article, click here.

Trade groups call on House Democrats to reject insurance increases:  More than 60 organizations representing the trucking, agriculture, construction, manufacturing, materials, and towing industries are petitioning members of the U.S. House of Representatives to reject an increase of motor carriers’ minimum liability insurance requirements.  In letters sent to the Blue Dog Coalition of fiscally-responsible Democrats and the Problem Solvers Caucus – both of which seek commonsense solutions to various issues – the coalition explains that an insurance increase “is wholly unnecessary” and “would do nothing to improve highway safety and would have a severe negative impact” on their members due to significantly higher operational costs.  The letters state that federal research indicates the current $750,000 minimum requirement covers damages in 99.4% of crashes involving commercial vehicles.  For the complete article, click here.

CASES

Auto Does the MCS-90 apply to intrastate transport? The Court of Appeals in Indiana concluded that it did, based upon the argument that Indiana law required that motor carriers meet the same levels of insurance for intra-state carriage and the policy contained the standard clause that it was in compliance with the applicable state law. The court also held that the endorsement was applicable when there was no cargo on the truck as the driver was on his way to pick up a shipment. Progresive Southeastern Insurance Co. v. B&T Bulk, LLC., 2021 WL 1747897
Summary judgement was awarded to the general liability carrier for a trucker in the Northern District of Texas for claims asserted by a shipper claiming rights under the policy. The court held that the shipper failed to give timely notice to the insurer and further concluded that the auto liability exclusion was applicable. Liberty Insurance Corp. v. Arch Insurance Company, 2021 WL 1950037
A risk retention group is not subject to the direct action statute in the Southern District of Georgia. The court dismissed the insurer from the suit, which also preserved diversity, keeping the case in the court for resolution. The excess insurer of one of the truckers was not so lucky, as the court concluded that the plaintiff was entitled to discovery on whether the insurer was truly excess and therefore not subject to the direct action statute. McIntire v. Ventura, 2021 WL 1947867
A policy endorsement which required that all litigation arising out of the commercial auto policy be brought in the state of Nebraska was not enforced by the District Court in Minnesota in an action in which the trucker sought coverage for an accident. The court rejected the insurer’s motion to dismiss concluding that there were substantial questions on whether the policy was a contract of adhesion and the validity of the claim. Sunlight Logistics, Inc. v. County Hall Insurance Co., 2021 WL 1946658
We talk often about how interrelationships between transportation companies can often result in increased litigation costs, and possible liability. The Eastern District of Virginia agreed that when there was ample evidence to create a question as to which of two companies was actually involved in brokering a shipment the defendant was not entitled to dismissal of the suit. The court also agreed that there was a plausible claim for vicarious liability when the defendant exercised some degree of control over the motor carrier. The court did agree to dismiss a claim for wilful and wanton negligence McCann v. Everette, 2021 WL 1951130
There was no evidence to support a claim of wantonness against a truck driver when he made an effort to confirm that there were no other vehicles in his way before turning. The Northern District of Alabama granted summary judgment to the driver. The motor carrier also received judgement on claims of negligent entrustment, hiring, training, supervision and retention when plaintiff had no evidence that the motor carrier knew the driver was incompetant. In addition, the parent company of the motor carrier was not liable for the acts of the motor carrier when it did not control the acts of the motor carrier. Turner v. Kinds. 2021 WL 1626745
A motor carrier was entitled to summary judgment according to the Supreme Court of Louisiana. The court held that the plaintiff could not support a claim that the truck driver was at fault when he stopped in a lane of traffic, put on his blinker and was waiting to turn into a driveway when the plaintiff decedent struck the rear of the truck. There was no evidence that he had stopped, parked, or left his vehicle standing in the roadway, which was prohibited by Louisiana law. Hester v. Walker, 2021 WL 1920965
The Western District of New York concluded that a motor carrier was not entitled to summary judgment on the theory that the accident was caused by an emergency situation The court held that “a tractor trailer blocking both lanes and vehicles blocking the shoulders of the highway might be an unforeseen or sudden condition depending a great deal on how much notice the driver had before encountering it, how well prepared the vehicle was to be safely stopped, and the speed of travel considering the road conditions at the time”. Lavellee v, Wimberly, 2021 WL 1929169
The motor carrier also fared well in the Western District of Texas. The court, through the Magistrate, recommended partial summary judgment on plaintiffs’ direct claims of negligent hiring; negligent training, supervision, and retention; negligent entrustment, maintenance, and inspection; negligent implementation of a safety program and monitoring against the motor carrier as well as the claims for gross negligence claims against both the carrier and driver and the negligence per se claim against the driver. The plaintiff simply could not present evidence to support those claims. Machado v. Dyer, 2021 WL 1840916
A plaintiff was not permitted to assert direct claims against a motor carrier who conceded vicarious liability for the actions of a driver The Eastern District of Missouri denied the request to amend the complaint, also rejecting the plaintiff’s request to assert new claims against the driver three years into the suit. Frost v Valdez-Gonzalez, 2021 WL 1698743
Such luck did not carry over to the motor carrier in the Court of Appeals in Ohio. The court held that the plaintiff had properly asserted claims against a trucking company for negligent hiring and retention. As the motor carrier was in default in responding to the complaint the default judgment was valid. Gibbs v. Burley Trucking, LLC., 2021 WL 1819831
Plaintiff’s motion for reconsideration on the granting of summary judgment to the motor carrier on a claim for punitive damages failed in the District Court in New Jersey. The case arose from a truck train collision, with a number of train passengers suing the trucking company. The court rejected plaintiff’s request, which was based only on plaintiff’s disagreement with the court’s decision. Jarka v. Holland, 2021 WL 127252
When all parties agree that the truck driver was acting within the scope of his employment immediately before and during the accident, plaintiffs’ claims for direct liability against the motor carrier for negligent hiring, training, supervision, and retention fail. The Western District of Oklahoma dismissed the claims. Estate of Ratley v. Awad, 2021 WL 1845497
Cargo Quiet month on the cargo front. No reported decisions
Worker’s Compensation A truck driver was permitted to seek recovery from the consignee when he was injured during the unloading of the vehicle. The Supreme Court of Idaho agreed that the consignee was not a statutory employer of the driver. The exclusive remedy of worker’s compensation under Idaho law did not preclude a direct claim against the consignee for injuries. Kelly v. TRC Fabrication, 2021 WL 1603734

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Jean & Chad

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