Energy On The Offensive™ #015 - Breaking Down The $10M Verdict Against Marvin Keller (115 power units)

Key Takeaways:

• Implement a program with frequent reminders that if drivers are sick, fatigued, and in an unsafe condition to drive they are to stop/not drive.

• Have enough insurance to make an adequate settlement offer.

• Have a program/procedure utilizing ELD/Telematics and training dispatchers to identify driver fatigue behaviors.

Details of the Accident:

According to the Kentucky State Police report, Walls was traveling eastbound on Interstate 64 around 11:31 p.m. on March 13, 2019, when he crossed the grassy median and collided with a pickup truck, driven by Christopher Short, 44, of Mount Sterling, Kentucky, who was headed westbound on Interstate 64 in Bath County. Both vehicles went through a guardrail and down an embankment. Christopher Short unfortunately succumbed to his injuries.

How The Case Unfolded:

The smoking gun that won the plaintiff such a large verdict started in 2006 when the driver began working for Schneider Trucking and answered yes to sleep disorders on his DOT medical form. As a result, he was going to be forced to undergo a sleep study. Unwilling to do that, the driver applied for a job at Marvin Keller. When he answered the same question on sleep disorders, he answered no…

This case is interesting to study because Marvin Keller is a well-run company and “did all the right things”. They had great CSA scores, forward and driver-facing cameras, above-average training, and a driver coaching program. The case was tried in a conservative federal court in a state not considered to be a judicial hell hole. Marvin Keller is also not a publicly traded company with unlimited resources. So, it makes you ask, what led to the 10-million-dollar verdict?

My opinion is the defense was overconfident, missed the driver’s lie, and the difference in records from 2006 to 2007. What’s crazy, is the documents were sent from the defense to the plaintiffs. A quote from the plaintiff’s attorney who tried the case said out of the gate in the opening statement the defense praised the driver and his safety record which blindsided them when the driver was caught lying on the stand.

Starting back from the beginning, this case was clear-cut that Marvin Keller was at fault. The driver either fell asleep or had a medical emergency, crossed the medium hitting the third party killing him on impact. The defense never questioned fault but fought that the driver had a sudden and unexpected medical emergency rather than falling asleep due to illness and fatigue.

The day before the crash, the driver went to the doctor and was diagnosed with chronic bronchitis and pink eye. The next day the driver decides to work. The morning of the crash, the driver starts his day at 5:38 am, and by 6:14 am he has to stop and take a 30-minute nap. At 7:25 am the driver takes another break 30-minute break. If the driver was struggling could the dispatcher or company have identified and stopped the driver?

Why did this case end up at trial? The defense attempted to settle the case for one million dollars and threatened bankruptcy if they did not accept. Marvin Keller was only purchasing one million in liability insurance. Mr. Short was 44 years old earning $90,000 per year. According to the Plaintiff, his loss of earning potential was $2,449,343. The widow, described as a strong woman not willing to be pushed around does not accept the offer.

The case the plaintiffs made to tie the negligence to the company and not just one rogue driver is that Marvin Keller had a culture of drivers working while sick. Pay that is tied to wheels turning down the road and a limited amount of paid time off is given. When the owner, Mr. Keller, was on the stand, he said they try to do their best. The plaintiff first established that the trucking company has no way of knowing a driver’s health condition and it is up to the driver to be honest. The owner agreed. The plaintiff then baited Mr. Keller into a corner when he asked if it was a trust but verify system regarding drivers. The owner proudly agreed. The plaintiff then dropped the hammer and asked what efforts do you make to verify?

The jury came back with a unanimous decision and awarded 10 million dollars. After the trial, the defense came back to negotiate a higher settlement with the threat of bankruptcy. The plaintiffs refused and Marvin Keller filed for Chapter 11 bankruptcy protection. The plaintiff received a seat on the bankruptcy committee and is currently pursuing Marvin Keller in bankruptcy.