$462 Million Dollar Jury Award Against Trailer Manufacturer

$462 Million Dollar Jury Award Against Trailer Manufacturer

On Thursday, September 5, 2024, after a two-week trial, a St. Louis City jury awarded a $462 million verdict to the two St. Louis families. Compensatory damages included $6 million to one family and $6 million to the other family. The jury awarded punitive damages at $450 million. As far as I know, the largest punitive damages verdict against a trailer manufacturer ever.

How did we get here?

Like so many things, a horrible set of facts. On May 19, 2019, a trailer made by Wabash in 2004 was struck from behind by a passenger vehicle along Interstate 44 and 55 near the 7th Street exit in St. Lous City. Taron Tailor (30), the driver, and his passenger, Nicholas Perkins (23), collided with the stopped trailer at over 40 mph, instantly killing them.

Everyone is talking about trailers.

It’s undisputed that Wabash manufactured the trailer to the safety standards of the time. From testimony, the trailer was designed to prevent underrides on rear impacts of 30 miles per hour. However, the plaintiffs argued that Wabash knew for years that the rear impact guards (RIGs) were insufficient, that the RIGs should handle a much higher rate of speed. They argued that the cost per trailer for a more robust RIG would cost Wabash $313 per trailer. As a result, Wabash allegedly saved $15 million per year for 30 years, hence the $450 million punitive verdict ($15M x 30 years) .

We will see a lot of this in the news in the days and weeks to come. One thing is certain, the punitive damages portion of the verdict will be reduced. In fact, absent certain circumstances, Missouri law requires that punitive damages not exceed five times compensatory damages. $60 million is still a lot of money. revisor.mo.gov/main/OneSectio…

It is unlikely any RIG could have prevented the deaths in this case, but a larger question now looms before of us. Excluding deaths caused by side underride crashes, there have been an estimated 14,350 known fatalities involving rear underride crashes. But there are millions of trailers on the road today, many with RIGs that would not prevent an underride over 30mph.

What are fleets with older trailing equipment to do? Do these trailers require service campaigns to upfit stronger RIGs? How will insures react to this new liability? What should be a safety standards for RIGs? So many questions, and so few answers.