Trucking seminar: U.S. litigation trends coming to Canada soon

U.S.-style litigation against long-haul trucking companies is “creeping into Canada”, says lawyer Paul Iacono of York Street Dispute Resolution Group. Iacono made the comments as part of a seminar on transportation litigation sponsored by Kingsway General Insurance Co. in Mississauga Tuesday.
There is a five to ten year lag time for U.S. litigation trends to make their way to Canada, he adds. “Our juris prudence is much more conservative, but it is deteriorating.” For example, in the past three years, Canada saw its first seven-figure punitive damages verdict against a driver. And in Hamilton, ON, a $200,000 punitive damages verdict against a driver is on its way to the appeals court.
He also expects criminal court verdicts against drivers may soon be admissible in civil cases in Canada, as is already the case in the U.S. In the U.S. if a driver is found criminally responsible for a collision, this wipes out a defense in the civil case, making is solely an issue of the amount of the settlement, confirms John Pion, a lawyer with Pennsylvania-based Dickie, McCamey & Chilcote. This may put trucking companies in the position of wanting to provide a defense for drivers in criminal cases, he adds.
In the U.S., lawsuits for transport accidents are based on numerous theories of liability including driver negligence, the company’s negligence in hiring, training or supervision of the driver, or the vicarious liability for the driver’s actions, Pion points out. Cases are also increasingly being based on spoilation of evidence, emphasizing the importance of early intervention after an accident by adjusters, lawyers and experts to preserve evidence. Even drivers have a role to play, Plion adds, by taking photos at the scene, not speaking to the media or others without the advice of counsel, and saving all possible evidence and documents.
Kingsway has set up a “catastrophe team” to deal with serious trucking claims, in the style of many U.S. insurers, to capitalize on the need for early response to such claims, explains Linda Paccanaro, Kingway General’s assistant vice president of claims. She notes that even in Canada “judgement awards are escalating at a phenomenal rate”.