What Cities Can Do About Rising Fire Apparatus Costs

The massive price hikes of fire apparatus have left city governments scrambling for solutions. Already tight budgets are being reworked to try to find the funds necessary to purchase new trucks and equipment. Meanwhile, some cities are pouring their limited resources into repairs and maintenance as a way of handling their aging fleets.

There is another option to address the fire apparatus crisis. Cities are joining the growing list of plaintiffs who have filed lawsuits against the manufacturers alleged to be responsible for these higher prices. Your municipality or department may have a legal claim as well. Find out how the Richmond-based law firm of Phelan Petty Injury Lawyers can help.

The scope of the problem

Rising costs are nothing new and have impacted every industry in the United States. However, the problem seems especially pronounced for the fire apparatus industry. By some estimates, the cost of a new fire truck has doubled over the last decade. Cities with limited funds cannot afford these prices.

There are various root causes of the problem:

• Market consolidation: Only three companies control about 80% of the fire apparatus industry. This means that a few large corporations may have significant pricing power, leaving cities with limited options.
• Limited supplies: Fire trucks and other equipment are in limited supply. Some of this is due to allegedly deliberate shortages brought about by plant closures and other decisions.
• Delayed delivery: In the meantime, some cities and fire departments are waiting up to four years to receive new trucks and equipment. As cities grow, they cannot keep up with the demand for expanded fire service.
• Aging fleets and mechanical failures: Richmond and other cities that cannot afford new trucks are using old ones for now. However, they are experiencing mechanical failures that could put lives in danger.
• Service problems: The lack of new, reliable equipment is already causing cities to have problems responding to fires and other emergencies. This problem is likely to get much worse in the near future.

Practical solutions to the crisis

As your city or department weighs its legal options, there are some potential solutions that could work in the short term. These are a few examples:

• Regional agreements: Some cities are joining regional purchasing cooperatives to offset the burden of higher prices. Another approach is combining orders with those of other departments or cities, and still another solution is to take advantage of statewide procurement contracts.
• Borrowing and sharing trucks: Cities and departments can also enter into agreements to share trucks with one another. One overburdened fire district could possibly borrow trucks from a neighboring district that has more available resources.
• Fleet life extension strategies: Extending the life of existing fire trucks and equipment is now becoming a dedicated strategy, not simply an afterthought. Cities and departments are refurbishing old trucks, rebuilding pumps, and carefully rotating their reserve units.
• Alternative forms of financing: If cities don’t have enough existing funds to buy new trucks, they may adopt alternative financing methods like municipal bonds, federal grants, and lease-purchase agreements. State grants have also assisted local volunteer departments.
• Adjusted purchasing practices: Cities may avoid purchasing customized trucks and instead standardize their fleet designs. Custom apparatus can cost significantly more and take much longer to deliver.
• Secondary and refurbished markets: Although not ideal, Richmond and other cities can look into options such as lightly used trucks or refurbished fleets. These may require more maintenance, however, so cities should be careful about what they purchase.

Legal options for combating skyrocketing prices

The above tactics may be necessary until more lasting solutions to the pricing crisis are found. In the long term, cities need to consider taking legal action to alleviate the burden of higher prices. Much of the problem is due to market consolidation.

Just three companies – REV Group, Oshkosh Corporation, and Rosenbauer – dominate roughly 80% of the fire apparatus industry. Cities across the country have argued that their control of the market has driven prices to historic highs. These practices may be indicative of anticompetitive and possibly illegal activities.

Two federal laws, the Sherman Act and the Clayton Act, are at the center of emerging litigation over high prices. These statutes are designed to prevent price fixing and other anticompetitive practices that effectively establish monopolies. Plaintiffs are filing antitrust lawsuits that have been consolidated into multidistrict litigation (MDL).

The objective of these lawsuits is to stop and prevent alleged anticompetitive practices that put cities and fire departments, along with the lives of firefighters and civilians, in jeopardy. Your city may choose to file a lawsuit with the goal of:

• Seeking recovery for previous overpriced purchases
• Winning treble (triple) damages
• Securing attorneys’ fees and court costs

Ultimately, the lawsuits involve a fundamental public safety issue. While three large corporations have enjoyed significant profit margins due to their market dominance, cities and departments are suffering from outdated equipment and longer emergency response times.

How Phelan Petty Injury Lawyers can help your city

If you represent a city, fire department, or other civil fire authority in or near the Richmond area, you may have the right to file an antitrust lawsuit. The time to act is now because supplies are unlikely to improve any time soon. Delays are also ongoing, even for the cities that can afford to purchase new fire apparatus.

Our firm is dedicated to standing up for justice, whether for personal injury clients or for communities that are struggling under the weight of higher fire truck prices. As this litigation unfolds and more plaintiffs join, Phelan Petty Injury Lawyers offers the following to prospective clients:

• A free, no-obligation case evaluation: If your city is unable to afford new fire trucks, let us take a look at your unique situation. We can review the problem and determine if you may have a legal claim, without any obligation on your part.
• Knowledgeable legal experience: Our attorneys understand the laws and regulations surrounding this complicated issue. We can explain your rights as a municipal government with respect to these higher prices.
• Contingency representation: We represent clients on contingency, which means they pay no upfront costs. If we don’t obtain a favorable verdict or settlement for you, then you owe nothing.

Contact us today to get started

To learn more about the fire apparatus pricing crisis and how cities are responding, reach out to Phelan Petty Injury Lawyers. We can schedule your initial consultation today and help you explore possible solutions to the problem.