Overview of My SC&RA Webinar: Shielding Your Business from Legal Risks

Overview of My SC&RA Webinar: Shielding Your Business from Legal Risks

On October 16, 2024, I had the pleasure of conducting a webinar for the Specialized Carriers & Rigging Association (SCRA) titled "On the Defensive Line: Shielding Your Business from Crane, Rigging, and Specialized Hauling-Related Legal Risks." We explored some of the most pressing challenges facing our industry today, with a focus on protecting business operations amid a rapidly shifting legal landscape. Here’s a recap of the key takeaways I shared with our audience.

Understanding the Rise of Nuclear Verdicts

In recent years, nuclear verdicts—awards exceeding $10 million—have become a growing concern for our industry. During the webinar, I highlighted data from a U.S. Chamber of Commerce study showing that these significant awards stem largely from noneconomic damages, like pain and suffering. This trend is especially impactful in crane and transportation sectors, where the risk of increased premiums and reduced underwriting capacity is very real. Understanding what drives these massive verdicts helps us anticipate potential risks in our operations.

What Drives Nuclear Verdicts?

Some of the biggest factors include:

Reptile Theory: A litigation strategy that appeals to jurors' instincts to protect the community, sometimes pushing them to assign fault based on safety concerns.

Litigation Funding: Outside investors are increasingly funding lawsuits, leading to more claims and larger settlements.

Social Inflation: Changes in societal attitudes toward lawsuits are contributing to larger payouts and inflated expectations around claims.

Legal Advertising: Attorney advertising often highlights large settlements and high awards, influencing jurors and promoting a “litigation lottery” mindset that encourages higher payouts. This advertising fuels an increase in claims frequency and normalizes litigation as a primary means of conflict resolution.

Punitive Damages: Although punitive damages are awarded in only a quarter of nuclear verdict cases, they often raise settlement amounts significantly. They’re typically assigned when there’s perceived gross negligence or a pattern of noncompliance. Causes can include violations of safety regulations, intentional misrepresentation of certifications, and ignoring telematics or safety alerts.

These drivers underscore the importance of proactive defense measures to manage these risks.

Embracing a Defensive Mindset Through SWOT Analysis

A key takeaway was the importance of conducting an annual SWOT analysis—specifically with an eye on potential threats. I explained how this process helps companies in our industry stay resilient by focusing on risk prevention, legal compliance, and competitive positioning. Here’s why threat analysis is so critical:

Early Risk Identification: Spotting emerging risks before they become liabilities.

Adapting to Compliance Requirements: Staying ahead of regulatory shifts to avoid fines and lawsuits.

Improving Claims Preparedness: Leveraging past claims to strengthen safety practices and improve documentation processes.

Maintaining a Competitive Edge: Staying informed about industry trends so you can adapt to shifts that may affect your business.

In high-risk industries, regularly analyzing these areas is essential for creating a resilient business.

Navigating the Discovery Process

Discovery is often one of the most challenging phases for crane and rigging companies involved in litigation. I walked the group through practical ways to prepare for discovery, emphasizing the need for thorough documentation. The key points included:

Maintaining Detailed Records: Logs for maintenance, incident responses, and employee training are invaluable during discovery.

Using Technology: Telematics, IoT sensors, and video monitoring can provide evidence of compliance and counter allegations.

Employee Training: Preparing employees for depositions reduces the risk of damaging statements.

Having strong documentation and well-prepared employees can make a significant difference in legal outcomes, especially when facing complex liability claims.

Safety Technology as a Legal Defense

One of the most effective ways to enhance safety and strengthen a company’s legal defense is through technology. I discussed how various tools not only help companies comply with safety regulations but also provide a valuable layer of protection during litigation. Some examples I highlighted:

Dash Cams and GPS Tracking: Providing objective data that can verify safety protocols and support legal defenses.

Digital Training Platforms: Tracking certifications to prove employees are qualified and trained.

Wearable Technology: Tools that monitor fatigue and abnormal movements, reducing incident risks on the job.

Implementing these technologies demonstrates a proactive commitment to safety, which benefits both the workforce and the company’s reputation.

Addressing Small Verdict Trends and Legislative Options

While nuclear verdicts may grab headlines, even smaller verdicts and settlements have a significant financial impact on our industry. I encouraged attendees to stay informed on regional trends, especially in areas with high payout averages. Advocating for tort reform, including caps on damages, can be an essential part of managing liability risks.

Final Thoughts: Taking a Proactive Defensive Stance

Throughout the webinar, I stressed that a strong defense requires more than just meeting compliance standards. Effective legal preparedness includes maintaining detailed documentation, training employees thoroughly, and embracing technology to support safe operations. By staying vigilant and proactive, crane and transportation companies can protect their assets, reputation, and workforce.

I’m grateful for the opportunity to share these insights and hope our attendees came away with strategies that will make a difference in their operations. Thank you to everyone who joined, and I look forward to continuing this conversation and supporting our industry’s growth and resilience.

This overview captures the key points we discussed in the webinar and emphasizes why a defensive approach is essential in today’s legal environment. I hope this serves as a helpful recap for those looking to deepen their understanding of the strategies discussed.