I was pleased to see that Transportation Topics, a leading trucking industry publication, published my letter to the Editor in its April 23, 2012 edition on page 9. My letter on why plaintiff lawyer’s are having to pursue brokers for full restitution for their clients is as follows:
This is in reference to the story “TIA Pushes Broad Offensive to Lower Brokers’ Liability” (4-2, p. 4).
The Motor Carrier Act of 1980 set minimum insurance limits for carriers at $750,000. Those limits have not been raised in 32 years. If you go to any present-value calculator on the Internet and use a 4% inflation rate, you will find that the present value of $750,000 after 32 years, is about $213,000 in today’s dollars. To put it another way, you would need $2.6 million in today’s dollars to equal $750,000 in 1980.
Many carriers are still only carrying $750,000 in coverage, and when a truly catastrophic wreck occurs, $750,000 is clearly inadequate.
Lawyers facing an inadequate recovery for their clients then look at other parties to make up the difference. Brokers easily could decrease their exposure to liability simply by making sure the carriers they use have adequate insurance.