Actual stories of lawsuits for doing tractor work for hire.

[MHarryE]

On the 7th page and have there been any real major lawsuits cited? I have been involved in many lawsuits but all from owners suing the manufacturer because of soemthing that happened. I only recall one case in which I was somewhat inolved where the tractor operator was sued. Three people went together to buy approximately 11,000 acres in Montana, contracted people to till, plant, and harvest. I had provided a test combine to the harvester who had 5 machines of his own on the job. We identified large places that had been missed by the people hired to do the planting so the owners sued. I was deposed but only the custom harvester was asked to testify in court. The case made it to court because of the size - over 1,000 acres the tractor drivers had missed planting. Now as far as people suing a company - in one year we had 14 lawsuits where customers climbed in the grain bin with the unloading auger running and proceeded to auger hands, feet, and in one case a whole arm out into the truck, so they sued us. Problem is that it costs so much to defend that even if it is the customer's neglegence, we almost always settled out of court for some amount. Agricultural equipment owners are the suingest people in America.

 

[topbuilder]

Nope, someone made up a story about a $25,000 cat being run over by a brush hog. That's about as close as we have come.

The tractor dealership I worked at was drug into a law suit. The buyer was feeling under the ball hitch of his loaded 16' trailer to see if the trailer was securely attached. About that time the trailer fell onto the ball all the way. Yep, lost a finger. Pain and suffering, loss of "affection" yada yada yada. He sued the hitch manufacturer, the trailer MFG, GM, bumper company, ect...
No, it didn't happen on the dealers property, it was at his property some months after the purchase. "nobody told him not to put his fingers in between the ball and hitch".

 

[quicksandfarmer]

If you Google "backhoe lawsuit" you'll find some. Here's a good one:
Dune Energy sues after backhoe operator allegedly causes oil spill | Louisiana Record

This one too:
City settles lawsuit over tulsa building damaged by backhoe - scoopnest.com

 

[quicksandfarmer]

Another good one:
Plainfield Motorcyclist Collects $1.3 Million Dollar Settlement | The Reardon Law Firm, P.C. | New London Connecticut

 

[namesray]

I have recently started doing jobs, for money. I got full insurance from the same agency I already had auto/home. It cost me $459 for a year of liability coverage. I'm covered up to $1M per incident. I am considered "Landscaping" and that includes "light excavation". Once rule is I am the only one allowed to operate my equipment. I am considering going to an LLC, just because I like to be covered.

No stories, just all about risk mitigation.

I have been researching and asking people I know lately and I am kinda coming to the conclusion that a good insurance policy might go farther in protecting you then a llc or corporation.

What's your guys take on this? Probably varies from state to state?

 

[namesray]

You paint a bleak picture! Good thing it's not as bad as you make it out to be.

namesray, if you use some common sense and take some reasonable steps up front you would be fine in all of this situations. Nothing is guaranteed and yes, technically, anybody can sue anyone for anything. Most states, Texas may be the best example, have passed some pretty good tort reform laws in the last few years and judges and juries have gotten their eyes opened about frivolous lawsuits, even in small claims courts.

I've never heard of a fee for the defendant in a SCC action unless you are filing a cross action. Just to appear and tell your side of why you are not responsible doesn't cost any fee in any jurisdiction I am familiar with. Yes you will be out the time to appear and to prepare. If you hire a lawyer that will cost you money.

Ive seen plenty of frivolous lawsuits. One of the most proactive things you can do to protect yourself is to KNOW your Customer!

KNOW the property and KNOW what you are doing. Document everything. Have a good release form. Take some pictures before and after. Serves two purposes - shows what you have done and protects you from false claims. Helps with repeat business to get to know people and repeat business is what you want, with people you KNOW and on property you KNOW.



TBS

I totally agree with this. I know nothing is for sure, but I still think common sense and knowing customers and situation will go a long ways.

 

[namesray]

Be afraid! Be very afraid!! Stay inside and close the blinds! Be afraid of lawyers! Be afraid of Muslims! Be afraid of immigrants! Be afraid of voter fraud! Be afraid of large groups! Be afraid, Obama is coming to take your gun! Be afraid that if you do anything, you will get sued!!

....and by all means, if you still do tractor work for hire, don't disconnect the seat safety switch....it will void the warranty!! (and be a mark on your permanent record!!)

This made me laugh. I needed that. Thanks. I can just hear a narrator, with doomsday music in the background, with a scary voice saying this.

 

[namesray]

I did have one job where I told the customer I would fix his water line if I hit it. Another stump grinder told them what I tell people, " I'm not responsible". The customers questioned him. (elderly couple, not able to make repairs) When pushed, he walked the job. I could see the meter, where it was coming from, where it was going to. The meter was almost 2' deep, I'm grinding 6" max. Low risk.
Before I could finish the job, 4 men were there asking for my card. I was on that street for the next week.

Great way to assess the situation, make a educated decision, and grow your business. Good example here I feel.

 

[TheMan419]

I have been researching and asking people I know lately and I am kinda coming to the conclusion that a good insurance policy might go farther in protecting you then a llc or corporation.

What's your guys take on this? Probably varies from state to state?

Do both. An LLC is cheap to set up and insulates you to a degree from personal risk. The insurance policy does that as well.

To me the largest benefit of the insurance policy is they have lawyers at the ready if you do get sued, and people to make a good, unemotional, business decision about settling a case. Even if you really did nothing wrong and a jury would rule in your favor, you do not want to be tied down doing depositions, answering discovery and all the other stuff that comes along with litigation. You want to get back to your job, your life, whatever it is you enjoy doing.

Also as a consumer of services, I would look more favorably on a potential vendor who could advertise that they were insured.

Even if you do most of your work in the county, it might be good to see what requirements the local city has for licensing. If it is not too tough get licensed. Then you can advertise you are licensed by City x. That will hold cache for people looking for services.

 

[topbuilder]

"Shredding/Piercing the Veil

Although the following is not an exhaustive list, a Washington State court will sometimes “shred” the corporate veil where:
•The corporation or its management has engaged in fraudulent activities. Limited liability is supposed to favor those who operate legitimate business and who do so in legitimate fashion. The law of corporations cannot be used to hide the existence of, or shield the perpetrators of fraud.
•There is no legitimate separation between the corporation and its owners. The important thing to remember here is that the veil can be pierced even when the business has done no wrong if, after forming the corporation, the owners merely continue on as if there was no separate entity. Important questions to keep in mind include: •Is the corporation a sham?
•Do the owners pay personal debts out of corporate funds or other corporate assets?
•Does corporate “management” make business decisions without appropriately recording them in the corporate records?

•If the owners have ignored the sort of “separateness” that is required of true corporate activity, the courts will have little trouble ignoring it as well. "

Washington State Business Law Attorneys - Blado Kiger Bolan, P.S.

I do not recommend an LLC unless you are the type person who will hold board meetings with yourself, keep up to date the required records, are willing to file another tax return every year... even if you have zero business activity.