Dive Brief:
- The Texas Supreme Court ruled in favor of Werner Enterprises for a case involving a fatal crash that was poised to put tremendous liability on the carrier, according to a June 27 opinion.
- The ruling reverses a state appeals court decision that held the carrier and its driver liable for over $100 million in damages. The Texas Supreme Court described the crash as a tragic accident on an icy interstate.
- The court dismissed the lawsuit, which involved a F-350 pickup truck crossing a 42-foot median and crashing into a tractor-trailer, killing a 7-year-old boy and injuring other family members. Due to the crash, the boy’s sister became quadriplegic.
Dive Insight:
The ruling from Texas' highest court rebuts lower courts that sided with the family in a monumental reversal, following the 2014 crash.
While the financial stakes were high, President and Chief Legal Officer Nathan Meisgeier noted the continuing somberness of the fatal crash.
“We have not and will not lose sight of the tragic loss the Blake family suffered because of this accident. Our continued thoughts and prayers are with the Blake family,” Meisgeier said in a news release.
The court took a somber reflection of the tragedy, too, but also cast the case differently than lower courts, suggesting the driver "is not liable if his involvement was a mere 'happenstance of place and time.'"
While noting the tragedy, the carrier also noted Werner's insurance policies had a maximum liability of $10 million. Insurance largely covered the entire verdict award, the company previously noted, but the Texas Supreme Court ruling means Werner is reversing $45.7 million in liability, including interest, for Q2 2025.
“The Company will also reverse a $79.2 million receivable from its third-party insurance providers and corresponding claims liability for the same amount on its consolidated balance sheet,” according to a securities filing from Werner.
The outcome comes at a time where rising costs from inflation have also hit insurance premiums. Carriers from J.B. Hunt Transport Services to Landstar System have noted rising insurance and claims costs in recent quarterly earnings filings.
Meisgeier said the recent verdict was a long-awaited win.
“After seven years navigating the appellate process, we are thankful the Texas Supreme Court reached the same conclusion as law enforcement — that the Werner drivers and our company did nothing wrong,” he said.
