How Technology Helps Fleets Reduce Lawsuit Risk

Summary: The most effective ways commercial fleets can reduce their exposure to litigation and nuclear lawsuits is to proactively improve safety and compliance within the fleet, while also implementing telematics technologies that help exonerate drivers and fleet practices in the case of a lawsuit.

Why is Lawsuit Reform a Top Issue for Commercial Fleets?

Lawsuit abuse reform continues to be a top concern for commercial carriers, according to ATRI’s most recent industry survey, and verdicts of $1 million or more now make up nearly 70% of all trucking-related settlements.

According to the American Trucking Association, while motor carriers should be held accountable if their fleet’s actions cause injury and pay fair compensation, certain current tactics and trends have turned truck accident cases in a “Jackpot Justice” industry, designed to “engineer nuclear verdicts and settlements that are disproportionate to the alleged harm, or completely untethered from actual causation for the underlying accident.”

Nuclear verdicts are lawsuits in which the jury awards $10 million or more. The median nuclear verdict in 2022 was $36 million, 50% higher than the median nuclear verdict in 2013. Some "thermonuclear" cases can surpass $100 million. Once insurance coverage is surpassed, the fees are taken from business assets, potentially bankrupting a smaller fleet.

How Can Fleets Reduce the Likelihood of a Nuclear Verdict?

The most effective ways fleets can reduce their exposure to litigation is to proactively improve safety and compliance within the fleet, while also implementing technologies that help exonerate drivers and fleet practices in the case of a lawsuit.

1. Support Safer Driver Habits

Telematics technology and fleet management automation can be very effective in encouraging safer driver habits which reduce the likelihood of an accident. For example, real-time data reporting, sorted by driver, help managers identify which drivers may need additional coaching. Similarly, these records identify top performers, allowing managers to reward and recognize good driving habits and build a corporate safety culture.

More accessible records also make it easier to track trends over time, identifying areas that need wider-scale training. Automated alerts make it easier to respond more promptly to incidents like near-misses or ongoing negative habits like speeding or hard breaking. Diverse and ongoing training tools help drivers continue their education online or in person, and demonstrate the fleet’s commitment to increasing safe and compliant driving, a valuable piece of evidence in the case of a lawsuit.

2. Employ AI Camera Technology

Fleet technologies, especially cameras with incorporated AI technology, can be especially valuable in the case of a lawsuit against a fleet. Video footage, both driver-facing and external-facing, can give a clear and detailed explanation of what took place leading up to an accident. When drivers understand that driver-facing cameras are actually a valuable tool in protecting them against frivolous lawsuits, they become more inclined to accept them as part of their in-cab technologies.

Additionally, AI camera tools can be helpful in preventative risk management. For example, AI-powered driver monitoring systems can detect fatigue-related data in real-time, such as micro sleeps or other fatigue indicators, and alert the driver or manager that a rest break is needed before an accident occurs.

3. Increase Fleet Compliance

Maintaining a strong, compliant Compliance, Safety, Accountability (CSA) score is helpful in protecting your fleet from litigation. Plaintiff attorneys may use poor safety ratings and violation histories to suggest fleet negligence, while a solid CSA score proves a fleet takes compliance and safety seriously.

Telematics data and fleet management software are powerful tools in keeping your fleet compliant while improving your CSA scores. For example, automated alerts and reports ensure drivers are abiding under HOS regulations, while preventative maintenance schedules and electronic DVIRs support compliant equipment for reduced violations during roadside inspections. Proactive driver coaching and ongoing training prove your fleet prioritizes driver safety and crash prevention.

Technology Supports the Fight Against Nuclear Verdicts

While the battle against frivolous lawsuits continues to be a long-term fight for the trucking industry, individual fleets can take action now by utilizing fleet management tools and their telematics data to protect drivers and the fleet as a whole. Whether you are doing more to prevent actual crashes, or doing your due diligence in creating a culture of safety that stands up in court, preventive measures now can save your fleet in the long run.

Platform Science is a leading provider of fleet management tools that support safer, more efficient fleet operations. Our automated tools help carriers more efficiently gain insight into their fleet data, supporting better business decisions and a safer, more productive work environment for drivers. Learn more now about our technology offerings, including our extensive third-party app marketplace, or schedule a demo today.

Legal Disclaimer

The content in this blog is for informational purposes only and should not be construed as legal advice. References to lawsuits, court filings, regulatory actions, or legal developments are based on publicly available information and are intended solely to provide industry context. Allegations in pending litigation remain unproven unless and until established through the legal process.

Readers should consult their own legal advisors regarding any specific legal questions or how applicable laws or litigation may affect their business.

‍