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Montana committee hears bill to limit liability for agricultural vehicles amid safety, constitutional debate

Montana House Transportation Committee · January 20, 2025
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Summary

Lawmakers heard testimony on HB212, which would cap liability for agricultural vehicles (proposed limits: $750,000 per claim, $1.5 million per occurrence). Farmers described lawsuits after lawful road incidents; trial lawyers warned the caps could infringe Montana’s constitutional right to court access.

Representative Edward Byrne, sponsor of House Bill 212, told the House Transportation Committee on Thursday that the bill is meant to protect Montana farmers and ranchers who operate slow-moving agricultural equipment on public roads. Byrne said the measure adopts existing Department of Transportation limited-liability figures — $750,000 per claim and $1.5 million per occurrence — and broadens the definition of “agricultural operations” to include employees and service providers involved from preparation to transport.

Nicole Rolfe of the Montana Farm Bureau Federation urged support, saying farmers face growing traffic and liability risks as rural roads become busier. “Liability is something that's very concerning to farmers and ranchers,” Rolfe testified, adding that the Farm Bureau and the Montana Grain Growers Association back the bill.

Opponents pressed the committee on constitutional and consumer-protection concerns. Al Smith, testifying for a plaintiffs’ attorneys group, said HB212 would “infringe” Article II, Section 16 of the Montana Constitution, which guarantees access to courts and a remedy for injury, and questioned the justification for the $750,000/$1.5 million thresholds. Smith said the bill could artificially limit recoveries even in severe cases and urged the committee to defeat the measure.

Several committee members questioned whether section 2 of the bill would prevent injured parties from pursuing bad-faith claims against insurers who decline reasonable settlement offers. Representative Staffman framed an example in which an insurer refuses a settlement within policy limits and a later excess judgment leaves the policyholder exposed; opponents warned HB212 could remove insurers’ liability in those circumstances.

Carrie Passmore, an informational witness who lives in Creston, Flathead County, described two collisions involving family farm vehicles that she said were lawfully marked and operated. Passmore said one incident produced an insurance settlement of $5,000 and that her family faced the prospect of further suit despite taking precautions. She told the committee she could not imagine losing family property and livelihood when the operator “did everything correctly.”

Larry Flynn, deputy director of the Montana Department of Transportation, appeared as an informational witness to answer questions about departmental impacts; he said the liability figures in HB212 were drawn from existing MDT limited-liability provisions used for snowplows and construction operations.

Committee members requested a formal legal review of Article II, Section 16 to clarify any constitutional consequences. No committee vote occurred; Chair Durham closed the hearing and said the committee will take executive action on HB212 at a scheduled meeting Wednesday at 3 p.m.

The bill’s next procedural step is the committee’s executive action session, where members may amend the measure, accept or reject it, or set it aside.