New FAIR Trucking Act To Be A Shield Against Unfair Lawsuits

FAIR Trucking Act Targets Unfair Lawsuits Against Carriers

Lawmakers in Washington have introduced the FAIR Trucking Act, a bill designed to protect trucking companies and drivers from what supporters call unfair or abusive lawsuits. The measure would give federal courts jurisdiction over certain high-value trucking cases. Supporters believe this will limit forum shopping, reduce excessive verdicts, and create a fairer system for the trucking industry.

What the FAIR Trucking Act Proposes

The FAIR Trucking Act would amend Title 28 of the U.S. Code to expand federal court jurisdiction. It would apply when three conditions are met.

1. The case involves bodily harm or loss of life in a crash with one or more commercial motor vehicles in interstate commerce.
2. The claim seeks more than $5 million in damages, not counting interest or costs.
3. The case involves diversity of citizenship, meaning the plaintiff and defendant come from different states or involve a foreign party.

If all three apply, the case would move to federal court. Congress members Ashley Hinson of Iowa and Tom Barrett of Michigan introduced the bill in August 2025. They argue that this change will ensure fairness for both drivers and companies.

Why Supporters Back the Trucking Lawsuit Reform

Backers say the FAIR Trucking Act addresses a serious problem. Trucking companies, especially smaller ones, face the threat of what are known as “nuclear verdicts.” These are lawsuit awards that can climb into tens of millions of dollars.

Supporters also claim some lawyers use “forum shopping.” This is when attorneys choose state courts they expect will favor their clients with bigger payouts. By requiring certain cases to go to federal court, the bill aims to curb this practice.

Another reason for the act is concern about staged crashes and fraudulent claims. Lawmakers and industry groups argue that unfair lawsuits drive up insurance costs, strain small carriers, and hurt supply chains.

Industry Support for the FAIR Trucking Act

The FAIR Trucking Act has gained support from trucking trade groups, including the American Trucking Associations. Industry leaders say the bill will bring consistency to the legal process. Federal courts often follow more uniform rules and precedents than state courts.

They believe the act could reduce unpredictable risks. For small carriers with only a few trucks, a single large lawsuit can threaten their survival. Many see the bill as a way to shield honest drivers and companies from financial ruin while keeping bad actors accountable.

How the Bill Could Impact Truckers

If the FAIR Trucking Act becomes law, trucking companies may find more predictability in court outcomes. Insurance rates could also stabilize if fewer massive verdicts occur.

For small businesses and owner-operators, this could mean less fear of being wiped out by one lawsuit. It could also help carriers focus on operations rather than costly legal battles.

At the same time, federal courts may bring more structured timelines and discovery rules. That could reduce delays and improve consistency in rulings. However, litigation in federal court is often more complex. This may raise costs for some cases, even as it lowers risks for carriers overall.

Criticism and Concerns About the FAIR Trucking Act

Not everyone agrees with the approach. Critics argue that the FAIR Trucking Act might limit access to justice for victims. They say moving cases to federal court could make lawsuits more expensive and harder for injured people to pursue.

Others question whether Congress has the authority to decide jurisdiction this way. Legal challenges may arise if the bill becomes law. Some opponents fear the act tilts too far in favor of large companies, while making it harder for individuals to hold carriers accountable.

Next Steps for the FAIR Trucking Act

The FAIR Trucking Act has been introduced in the House of Representatives and referred to a committee. Lawmakers will debate, gather testimony, and may revise the bill before moving it forward. Supporters expect industry groups, insurers, and safety advocates to weigh in during the process.

If it advances, both the House and Senate would need to approve it. The president would then decide whether to sign it into law. Observers are watching closely, since the outcome could reshape how trucking lawsuits are handled in the future.

Bottom Line on the FAIR Trucking Act

The FAIR Trucking Act is designed to shift certain high-value trucking lawsuits to federal court. Supporters say it will protect drivers, improve fairness, and reduce abuse in the legal system. Critics argue it could restrict justice for victims and raise legal costs.

Either way, the debate shows how deeply lawsuits affect the trucking industry. The act highlights the balance lawmakers must strike between protecting businesses and ensuring accountability on the road.