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Tort Reform: Hitting the Brakes on Frivolous Lawsuits and Nuclear Verdicts

Franklin & Prokopik, July 21, 2025

Tort Reform: Hitting the Brakes on Frivolous Lawsuits and Nuclear Verdicts

What happened: Several states have enacted tort reform measures within the past few years addressing abusive commercial vehicle lawsuits, while federal reform remains stalled in Congress.

States taking action: West Virginia and Iowa passed laws capping non-economic damages at $5 million in trucking lawsuits and codifying the Admission Rule. The codification of the Admission Rule, a primary piece of TLR-supported SB 39, prevents a plaintiff from bringing a negligent hiring claim if the defendant trucking company admits that the involved driver was its employee and was acting within the course and scope of his employment. 

  • Florida’s broader 2023 reforms established a modified comparative negligence standard and curbed bad faith abuses, helping stabilize its legal environment and insurance market.

States falling behind: Colorado and Minnesota are moving in the opposite direction, expanding liability and increasing caps—changes that could fuel inflated verdicts and legal uncertainty. 

  • Without clear protections, businesses in these states face rising litigation risks and mounting insurance costs.

TLR Thoughts: The success of tort reforms in other states demonstrates that a stable, well-balanced legal system fuels economic growth and job creation. States that stand against frivolous lawsuits are experiencing improvements in affordability, fairness and economic resilience—while those reversing course are inviting more abuse.

Read the full article here.