Iowa's a step closer to capping lawsuit damages in truck crashes. What drivers should know

Iowans injured or killed in crashes with trucks and other large vehicles would face new limits on how much money they could receive in lawsuits, under a bill passed by the Iowa Senate.

The Iowa Senate voted 30-19 on Wednesday afternoon to pass Senate File 228, sending it to the House, where lawmakers have passed a similar bill through committee.

Four Republicans joined every Democrat in voting against the legislation.

The bill's floor manager, Sen. Mike Bousselot, R-Ankeny, said trucking is essential to Iowa's economy and the industry is seeing higher insurance rates spurred by the threat of large verdicts. Iowans see the cost of those rates reflected "when we try and buy a dozen eggs, when the goods we want aren't on that shelf," he said.

"This is affecting our entire state, our consumers, our taxpayers and our employers, because the higher rates make it harder to hire truck drivers, makes it harder to put trucks on the road," he said.

Democrats shared stories of victims killed or injured in crashes caused by commercial drivers and said the bill would protect large companies at the expense of Iowans.

"You are putting a price on life in this bill, and you’re saying it's to help Iowans save on the price of eggs," said Sen. Janet Petersen, D-Des Moines.

Here's what you should know about the bill:

How much money could Iowans get in a lawsuit if they're hit by a truck?

Under the bill, Iowans would be limited to $2 million in damages for pain and suffering in lawsuits over collisions involving trucks and other commercial vehicles.

The bill would not limit economic damages, such as compensation for lost wages or medical expenses.

The bill also allows plaintiffs to recover 100% of punitive damages in trucking lawsuits, if any are awarded.

The limit on noneconomic damages would not apply if the commercial vehicle driver is convicted of operating while intoxicated, or of a federal drug or alcohol charge, in connection with the crash.

The bill includes a long list of vehicles defined as "commercial motor vehicles" subject to the caps. That list ranges from vehicles that weigh at least 26,000 pounds to those transporting hazardous materials to tractors and other farm equipment to pickup trucks, if the truck is owned by a company.

"When we look at this laundry list of vehicles covered here, you know who’s not covered? Mom or dad driving the family car to a basketball game. They’re not getting this protection," said Sen. Nate Boulton, D-Des Moines.

The Iowa secretary of state would be required to adjust the cap for inflation every two years, beginning in 2026.

Companies would be protected from liability for negligently hiring truck drivers

Companies could not be sued for negligence "in hiring, training, supervising or trusting an employee" who is involved in a collision.

If the employer agrees that the driver was their employee and acting in the scope of their employment, then the bill directs the courts to dismiss any legal claims that the company negligently hired, trained or supervised the driver.

The protection would not apply if the commercial vehicle driver is convicted of operating while intoxicated, or of a federal drug or alcohol charge, in connection with the crash.

How many truck driving lawsuits has Iowa seen in recent years?

Iowa saw 1,113 lawsuits filed in 2022 related to motor vehicle accidents, according to data from the Iowa Judicial Branch. That number includes all motor vehicle lawsuits, not just those related to commercial vehicles.

The number of lawsuits filed in 2022 was the lowest of any year going back to 2018. In 2021, there were about 1,400 lawsuits filed.

Just 46 motor vehicle cases in Iowa reached a jury verdict in 2022, and only a portion of those would be cases related to commercial vehicles.

Forty-two people have been killed in crashes in Iowa so far this year, according to the Iowa Department of Transportation. Last year, 338 people in Iowa died as a result of vehicle accidents.

How do Iowa's commercial vehicle insurance rates compare with other states?

According to industry publications, Iowa's commercial truck insurance rates appear low compared to most other states.

Iowa is the state with the fourth-lowest commercial truck insurance rate in the country for interstate cargo coverage, according to constructioncoverage.com, which compiles information about different business insurance rates.

Iowa is also the state with the fourth-lowest rate for insurance for trucks being driven only within the state's boundaries, according to the website, which compiled its information using average pricing data from Progressive.

Commercial Truck Insurance HQ listed Iowa as the state with the second-lowest commercial truck insurance rates in 2020. Several other insurance-focused websites also rank Iowa favorably.

Sen. Adrian Dickey, R-Packwood, who is the chairman of the Iowa Motor Truck Association, criticized statistics shared about low commercial vehicle insurance rates in Iowa.

"The trial attorneys are using data from a construction-focused website to talk about over-the-road trucking insurance," he said. "Trucks in the construction industry experience much less liability risk than over-the-road semis. That’s why their insurance is cheaper."

He said the threat of large verdicts and settlements has caused insurance rates to rise.

"Our rates have increased 75% based on the nuclear verdicts and settlements, and less than 25% of the increase is actually due to the factors that they should be based on," Dickey said.

Boulton criticized the debate over the bill for failing to focus sufficiently enough on preventing accidents.

"Where was the mention of what we’re going to do to make our roads safer?" he asked. "Do you want to know the best way to prevent what you’re calling nuclear jury verdicts? Don’t kill people."

Have Iowa lawmakers limited damages in other lawsuits recently?

Yes. Earlier this month Gov. Kim Reynolds signed a law limiting noneconomic damages in medical malpractice lawsuits.

Iowans involved in the most serious medical malpractice cases, when a patient dies or is severely injured, are limited to $2 million in noneconomic damages in lawsuits against hospitals and $1 million in lawsuits against clinics and individual doctors.

More:Kim Reynolds signs limits on damages for pain, suffering in medical malpractice lawsuits

Like the legislation on truck driving lawsuits, the medical practice limits do not apply to economic damages.

Republicans also disagreed vehemently over the limits on damages in medical malpractice cases.

Eleven GOP lawmakers in the House and five in the Senate voted against the caps, with many of them publicly voicing their disagreement with the bill during debate.

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on Twitter at @sgrubermiller.

This article originally appeared on Des Moines Register: Iowa Senate passes $2M damages cap in lawsuits over trucking crashes