June 20, 2008

Truck accident trials in Georgia - attorney fee claim may be worth more than punitive damages

In trucking accident cases in Georgia, one interesting legal twist is that punitive damages are tried in the second phase of a bifurcated trial, are subject to a "clear and convincing evidence" standard and are generally capped at $250,000. But the same conduct that would support punitive damages can support an award of attorney fees and expenses of litigation pursuant to O.C.G.A. § 13-6-11 in the case in chief under the "preponderance" (greater weight) of the evidence standard. There is no cap on that claim.

Therefore, if a hypothetical plaintiff got a verdict for $5 million compensatory damages and $20 million punitive damages, the $20 million punitive damages would in almost all trucking cases be reduced to $250,000, reducing the judgment from $25 million to $5,250,000. However, with a claim for fees and expenses under OCGA Section 13-6-11, based on violation of Federal Motor Carrier Safety Regulations, the result would be a judgment for about $7 million plus expenses, rather than $5,250,000.

Evidence that appellants failed to comply with mandatory safety regulations promulgated for the benefit people in the position of the injured plaintiff is evidence that the trucking company acted in bad faith in the transaction, within the meaning of O.C.G.A. § 13-6-11. Meyer v. Trux Transp., Inc., 2006 WL 3246685 (N.D.Ga., decided Nov. 8, 2006)(FMCSA violations); Windermere, Ltd. v. Bettes, 211 Ga.App. 177 (1993)(landlord’s violation of fire exit safety regulations).

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