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their drivers, whether they have two   states with increased penalties if the   “What became very clear to me,
        drivers or two thousand drivers, here’s   victim is injured or killed.   and my entire 35 years was spent as an
        our anti-fraud plan. If you suspect that   The fear of staged accidents   insurance defense lawyer was, first, this
        you’ve been in an accident that may   goes hand in hand with that of a   works, and second, this is a great way for
        involve insurance fraud, here’s who you   large settlement. In the American   me to win cases for my clients,” he said.
        notify, here’s how you do it and here’s   Transportation Research Institute’s   Smith said fraudsters will say after
        how you document it. And have those   annual “Critical Issues in the Trucking   being caught that they know which
        written plans, policies and procedures   Industry” survey, insurance cost/  insurance companies investigate fraud
        in place.”                         availability and tort reform both   and how thoroughly they do so. They
                                           returned to the top 10 after many   also know which trucking companies
        A GOOD DEFENSE                     years outside it. In another study, ATRI   don’t investigate potential fraud com-
            Finally, motor carriers should part-  reported that nuclear verdicts are on   mitted against themselves. Those that
        ner with their insurance providers. They   the rise.                  don’t are more exposed.
        have a right to demand information     One factor that is leading to more   “They will test,” he said. “So they’ll
        about the provider’s anti-fraud program   of those huge verdicts is plaintiff’s   do a staged accident, and if it’s not
        before purchasing coverage.        attorneys’ skillful use of the “reptile   investigated and there’s a very quick
            Smith’s group does more than just   theory,” which activates jury members’   settlement for what they consider to be
        instruct carriers how to protect them-  primal fears to inspire them to protect   a very large amount of money, you just
        selves against staged accidents. It also   themselves, their families and the rest   put a target on the back of your truck
        advocates for regulatory and legislative   of society against the big, bad trucking   because they’re going to get you again.”
        changes. One New York law named    companies.                             Angel said carriers must stand up
        for grandmother Alice Ross, who died   But Smith said the same theory can   for themselves and their industry.
        in a staged accident, made it a crime   be used by trucking’s defenders when it   The consequences of not respond-
        to cause one. Smith’s group and other   comes to staged accidents. A jury mem-  ing to suspicious accidents are huge.
        industry advocates are seeking to pass   ber also doesn’t want to become the   “It’ll just continue to happen,” he said.
        the law on a national level and in other   innocent victim of insurance fraud.  ATR




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        ARKANSAS TRUCKING REPORT  |  Issue 4 2021                                                                 21
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