SB 426 Will Change the Way Truck Accident Lawsuits are Filed
Georgia is one of four states that allow plaintiffs to file lawsuits directly against insurers in truck accident lawsuits. This rule has been in place since 1930. For decades, however, Georgia’s insurance industry has sought to eliminate the long-standing provision allowing plaintiffs to sue insurance companies directly. This was the most important issue that the insurance industry wanted to see addressed by lawmakers. With the passage of Senate Bill 426 earlier this year, insurers have achieved their goal.
Since 1930, plaintiffs have been allowed to file lawsuits directly against an insurance company without naming the motor carrier or the driver as a defendant. This allowed injured parties to seek fair and quick compensation when a trucking company attempted to evade liability.
S.B. 426 now restricts these types of lawsuits. Under the revised proposal, a plaintiff could only sue an insurance company directly if the trucking company has gone bankrupt or is otherwise insolvent. Plaintiffs can also sue insurance companies directly when it is impossible to serve the driver or the motor carrier itself. This will make it much more difficult for plaintiffs to file suit and receive just compensation in a timely manner.
Proponents of the measure argued that it would reduce insurance rates for small trucking operations by lowering jury awards. While S.B. 426 could reduce jury awards in some cases, it’s unlikely to result in widespread reductions that are substantial enough to lower insurance rates. For the measure to lower insurance rates as much as the industry has promised, there must be a significant lowering of verdicts—millions of dollars—on average for these cases.
Truck accident lawsuits in Georgia
Truck accident lawsuits are not in the same category as car accident lawsuits. Truck accident lawsuits often involve claims of wrongful death or catastrophic injuries due to the sheer size of the vehicle involved and the amount of force peculiar to such accidents. Plaintiffs in these cases often suffer substantial injury, require months of rehab, and have medical expenses going into the hundreds of thousands of dollars. They often cannot work after these accidents and are thus compensated for their lost wages. In addition, pain and suffering damages can be extensive as the individual’s quality of life is never the same again once they’ve been involved in a truck accident.
For that reason, truck accident lawsuits often involve “nuclear” or very large jury verdicts going into the 7 and 8 figures. This is unlikely to change simply because you cannot directly name an insurance company in a lawsuit anymore. There is more evidence to indicate that this legislation may backfire on insurance companies. When juries hear that an insurance company is being named in a lawsuit, they start to think about how a large award could impact their own insurance rates. This, in turn, leads to lower jury awards.
Talk to an Atlanta, GA Truck Accident Attorney Today
The Forsythe Law Firm, LLC represents the interests of plaintiffs who have been injured by negligent truck drivers. Call our Atlanta truck accident attorneys today to schedule an appointment, and we can begin discussing how you could recover damages related to your medical expenses, lost wages, and reduced quality of life.
Source:
insurancejournal.com/news/southeast/2024/08/06/787102.htm
