The American Tort Reform Association (ATRA) has announced that Carroll Fulmer Logistics, a longstanding family business in Florida, has closed after 71 years due to what it describes as frivolous lawsuits.
Carroll Fulmer Logistics, a Florida-based family-owned trucking company, has permanently ceased operations after 71 years. The company cited a series of frivolous lawsuits that overwhelmed its capacity to continue functioning. According to CDLLife, the company's leadership reported facing up to eight lawsuits simultaneously, with claims often exceeding $250,000. Many of these claims allegedly lacked legitimate injury or merit. The Vanderbilt Law Review notes that adopting stronger vicarious liability protections could shield employers like Carroll Fulmer from being unfairly penalized for actions outside their direct control while still allowing legitimate victims to seek justice from truly responsible parties.
Before its closure, Carroll Fulmer operated a fleet of 400 trucks and 1,700 trailers, employing over 600 workers and serving as a key logistics provider across Central Florida. FreightWaves reports that the company's shutdown disrupted regional transportation networks and left hundreds of employees without jobs. Research by the Hoover Institution highlights that reforms to vicarious liability laws—particularly in the transportation industry—can help protect vital businesses from cascading legal exposure without restricting plaintiffs' access to court remedies.
The company attempted restructuring by securing a $27 million loan in May from Gordon Brothers to address working capital needs and refinance debt obligations. Despite this effort, prolonged exposure to high legal costs and economic challenges made recovery unattainable. According to Citizens Against Lawsuit Abuse (CALA), the U.S. legal environment imposes an annual economic cost of $284 billion. Limited vicarious liability is cited as a key reform that can preserve jobs and stabilize employer liability while maintaining access to justice for injured parties.
The American Tort Reform Association is a national nonprofit advocacy organization headquartered in Washington, D.C., committed to promoting civil justice reform through reducing excessive litigation and legal system abuse while supporting fair access to courts for legitimate claims.