Iowa Senate Passes Important Tort Reform

April 18, 2023

Legislation includes $5 million liability cap for trucking companies

Iowa Senate Passes Important Tort Reform

This week, the Iowa Senate passed a bill with a $5 million limit on the noneconomic damages a victim can win in court as the result of an accident involving a trucking company. This is important legislation for small business owners in Iowa who have been hit with frivolous lawsuits. NFIB has been lobbying to pass this bill since the beginning of the legislative session. Senate File 228 passed the Senate in February with a $2 million limit for noneconomic damages in lawsuits against trucking companies whose employee caused injury, death or other damages. Damages can be awarded for pain and suffering. However, lawmakers raised that amount to $5 million with adjustments starting in 2028 for inflation. The House also adjusted the bill to address employer liability and concerns about holding trucking companies accountable for negligent hiring, training and supervising practices. The $5 million cap matches the highest federal requirement to vehicles transporting hazardous materials such as radioactive materials. The bill is now on its way to the desk of Governor Kim Reynolds.

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State:

Iowa

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