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What Did the ATRI Report Actually Tell Us About Nuclear Verdicts in the Trucking Industry?
February 5th, 2021
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Positive News
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4 minute read
What Did the ATRI Report Actually Tell Us About Nuclear Verdicts in the Trucking Industry?
The American Transportation Research Institute (ATRI) study, Understanding the Impact of Nuclear Verdicts on the Trucking Industry did not address its stated query.Instead of studying the impact of verdicts above $10 million, the report focused on the impact of verdicts above $1 million. ATRI could address this major deficiency and the concerns below about the report by releasing the raw data and clarifying their data selection methods.Lack of Visibility of $10 M VerdictsThe ATRI report emphasized the $10 million figure as it relates to nuclear verdicts in the introduction and summary of their report, but their analysis is scant on a breakdown of verdicts that exceed this amount. For example, Fig. 2 cuts off after $5 million rather than having a column for cases with verdicts over $10 million. The report also breaks down the number of cases with verdicts over $1 million and compares numbers of cases between two timeframes (2005-2011 and 2012-2019).Question: If the report’s focus is on cases over $10 million, why didn’t ATRI have a chart showing the comparison of $10 million cases over the two timeframes?Answering this question can help ATRI address the main concern that their report was not a “bait and switch” that addressed verdicts over $1 million instead of those exceeding $10 million.Inflation Tracks with Verdict Size Until Year with Outlier VerdictSome of the data in the report runs counter to ATRI’s claims that truck crash verdicts are skyrocketing without any relation to inflation. In Figure 6., the report shows the change in average verdict size (over $1 million), annual inflation, and annual healthcare inflation by year. From 2010 to 2017, verdict size tracked to inflation. It was not until 2018, the year in which a $91 million verdict occurred, that these two trends diverged.With the limited sample size, this one case could have skewed 2018’s result.It is also worth noting that ATRI’s recently released Analysis of the Operational Cost of Trucking: 2020 Update found that between 2018 and 2019, the largest percentage decrease for average marginal costs for a motor carrier came from insurance premiums. In fact, the average marginal cost per mile was nearly the same in 2019 ($0.068) as it was in 2011 ($0.067).Methodology Does Not Explain How Data Was SelectedThe report does not clearly explain how ATRI collected the data for the cases analyzed. ATRI noted that they “compiled litigation data for 600 cases... and data was collected and amalgamated from multiple external sources in the industry.”Questions: What was the selection criteria for the 600 cases? What are the “external sources” that ATRI used to attain the data on these cases?
Stack of paperwork. Image via Maxpixel. Claimed as public domain / CCA-BY-0.0.
About Institute for Safer Trucking
The Institute for Safer Trucking, a 501(c)(3) based in Washington D.C., serves as a reliable resource for motor carriers and truck drivers to learn about safety improvements that can reduce crashes, injuries, and fatalities, as well as for families of truck crash victims and survivors in need of help after their truck crash. To learn more visit www.safertrucking.org.