The FAIR Trucking Act expands federal court jurisdiction for interstate motor carrier highway accident lawsuits exceeding \$5,000,000 when there is diversity of citizenship between the parties.
Ashley Hinson
Representative
IA-2
The FAIR Trucking Act expands federal court jurisdiction for lawsuits arising from accidents involving interstate commercial motor vehicles. This allows federal district courts to hear these cases if the amount in dispute exceeds \$5,000,000 and there is diversity of citizenship between the parties. The Act clarifies the rules for determining citizenship in these complex trucking accident claims.
Truck Accident Lawsuits Get a $5 Million Federal Entry Fee Under FAIR Trucking Act
The FAIR Trucking Act is a short but mighty piece of legislation that changes the playing field for high-stakes lawsuits involving interstate commercial trucks. Essentially, this bill expands the power of federal district courts to hear cases stemming from accidents involving big rigs crossing state lines, provided a few key conditions are met.
The New Rules of the Road
Right now, most personal injury lawsuits—even complex ones—happen in state court. This bill, however, updates Section 1332 of title 28, U.S. Code, to create a specific path for these truck accident cases to land in federal court. The goal is to provide a consistent venue for complex, high-value litigation involving companies that operate nationwide. For the case to qualify, two things must be true: First, there needs to be "diversity of citizenship," meaning the person suing (the plaintiff) and the company being sued (the defendant) are from different states or countries. Second, and this is the big one, the amount of money being disputed must be more than $5,000,000—not counting interest or court fees.
What Does a $5 Million Threshold Mean for You?
This is where the rubber meets the road. If you or someone you know is severely injured in an accident with an interstate truck, the choice of court can dramatically affect the outcome. Federal courts often have different procedural rules, different timelines, and draw from different jury pools than state courts. The $5 million threshold is incredibly high. For context, the standard threshold for most federal diversity cases is currently $75,000. By setting the bar at $5,000,000, the FAIR Trucking Act ensures that only the most catastrophic, high-value claims related to interstate trucking accidents get the federal court treatment.
For the massive motor carriers (the defendants), this shift could be seen as a benefit, allowing them to move their highest-risk cases into a potentially more predictable federal system. But for plaintiffs, this high bar creates a significant hurdle. If your damages are substantial—say, $3 million for lifelong injuries and medical care—you are locked out of the federal court option and must proceed in state court, even if the trucking company is based across the country. This limits the choice of venue for many victims with very serious, but sub-$5 million, claims. The bill does clarify how to determine citizenship for unincorporated groups, like a large trucking partnership, treating them as a citizen of both the state where they are primarily based and where they were legally formed, which helps reduce some legal ambiguity in these complex cases.