Embertson: How a Routine Fender Bender Costs Texans Big Money

Most Texans don’t realize just how out-of-control our legal system has become when it comes to forced settlements and mega-lawsuits. But here’s a case that makes it crystal clear:

Our company is based in the Austin area with offices stretching from the Oklahoma border to the border with Mexico. We provide equipment, installation, and repair services for vehicle fueling equipment, primarily for convenience stores and related businesses. That means our trucks are out on Texas roads a lot. That’s why we conduct background checks on potential employees and ensure they complete a defensive driving course even before they get behind the wheel of one of our vehicles. But even with thorough background checks and training, accidents happen.

In April 2022, one of our drivers, on his own time, rolled forward when a light turned green and tapped the vehicle in front of him, which had not yet started moving—it was a simple bumper-tap at a red light. No one was hurt.

The people in the pickup he bumped reported no injuries. They also said the vehicle belonged to their daughter, who was not present at the time of the accident. Within a couple of months, our insurance company settled the vehicle damage claim for just over $3,000—reasonable, given the minor nature of the incident.

But then, months later, we were blindsided. The male passenger in the pickup—who had initially reported no injuries—walked away with a settlement of more than $80,000 for “bodily injury.” And it didn’t stop there.

Despite this being a routine fender-bender, where no injuries were reported at the scene of the accident, a lawsuit followed, demanding more than $1 million plus additional “exemplary damages.” 

Here’s the problem: insurance companies are forced to settle today because they fear juries handing out multi-million-dollar verdicts. Lawyers know this. They count on it. That’s why they file these cases in the first place, knowing insurers would rather shell out hundreds of thousands than gamble on an even bigger loss.

And in the end, that’s exactly what happened. Our insurance company settled the case for a staggering $500,000, with the total payout reaching nearly $600,000 for a low-speed tap at a traffic light.

The real victim in all of this is you. If you live or work in Texas, you pay thousands of dollars yearly to finance this madness. These lawsuits skyrocket insurance premiums, even for those who have never been sued, and additionally drive up the cost of goods and services.

We’ve been in business for more than two decades. Not once has an accident involving one of our vehicles sent anyone to the hospital. Yet, thanks to cases like this, our insurance premiums doubled in 2023 and jumped another 50% the year after that.

We don’t want to reduce staff or raise prices, but we might have no other choice when law firms exploit minor accidents for big payouts. If this continues, we’ll all keep paying the price.  

Texas’s legal system needs reform before more businesses are forced to pass costs onto customers, lay off employees, or shut down entirely. Thankfully, Sen. Charles Schwertner and Rep. Greg Bonnen have filed legislation to restore transparency and fairness to our legal system. I’m hopeful lawmakers will pass Senate Bill 30 and House Bill 4806. Texans deserve a fair legal system that protects real victims. 

Editor’s Note: The above guest column was penned by Dave Embertson, president of Erling. Erling provides a broad range of services for retail and commercial gas stations and car washes. The column appears in the Rio Grande Guardian with the permission of the author. Embertson can be reached by email via: makenzie@castlecommunications.com.

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