Trucking industry urges civil-justice changes, warns insurance crisis is forcing carriers off roads

Representatives of Georgia’s trucking industry told the House Transportation Committee that recent increases in litigation costs and difficulty obtaining insurance are causing some carriers to curtail operations, halt routes or exit the market, and urged lawmakers to advance civil‑justice changes.

Seth McMillan, an industry representative who introduced the witnesses, said trucking is central to Georgia’s economy and that the sector is seeing strains on insurance markets. McMillan introduced board members from industry groups and said Georgia has about "105,000 registered DOT numbers in the state of Georgia." He said trucking supports a large share of local communities and that the industry is seeking legislative solutions during the session.

Charles Tarbutton, president of BH Transfer and chair of the Georgia Motor Trucking Association, told the committee the industry supports fair compensation for bona fide injuries but said Georgia’s civil-justice environment currently encourages what he described as "frivolous lawsuits" that raise costs for carriers and consumers. Tarbutton said his company had 16 open claims from 11 collisions, and that 15 of the claimants in Georgia could not substantiate clear injuries. "Filing a lawsuit in Georgia is a no risk proposition," Tarbutton said, arguing the filing cost is minimal while consequences fall disproportionately on defendants.

Attorney Blair Cash of Moseley Massenberg (transcript: Moseley Marsenac) described several procedural changes in pending legislation aimed at limiting plaintiffs’ advantage in non‑economic damage requests and in early-case discovery. He said the proposed changes include rules to prevent "anchoring" in jury deliberations on non‑economic damages and to allow earlier dismissal of claims that should be dismissed under existing rules — steps he said would reduce costly discovery in cases that lack merit.

Attorney Dennis Keane (Savannah) highlighted what he described as "phantom damages," where billed medical charges presented to juries are substantially higher than amounts actually paid by insurers, creating inflated damage claims that complicate settlement and trial values. Keane and Cash urged procedural reforms such as bifurcated trials (separating liability from damages) to reduce juror emotion-driven awards and to make apportionment of fault more consistent.

Matt Clark, a finance and accounting consultant who works with small trucking firms, gave examples of small operators facing abrupt insurance nonrenewals and large settlement demands from plaintiff attorneys. He said a small firm he works with settled two claims for six-figure amounts after receiving demands, even when vehicle damage was small; in one example he described a $4,000 vehicle repair and a reported $50,000 in medical bills leading to a six-figure settlement demand.

Industry witnesses urged the committee to consider pending legislation introduced in the state Senate and championed by the governor as steps to rebalance the civil process; witnesses said the measures are intended to limit frivolous suits and reduce insurance costs, not to shield bad actors. Several committee members asked technical questions about how proposed rules would affect discovery, venue and plaintiffs’ ability to refile dismissed suits.

The witnesses and committee members agreed the availability and affordability of insurance has real operational consequences: representatives said small haulers have parked trucks because they cannot obtain or afford insurance — a trend members said could affect road maintenance supply chains and local businesses that rely on trucked materials.

No formal votes were taken on legislation during the committee meeting; industry witnesses asked for continued dialogue with lawmakers.