The Fire Apparatus Pricing Crisis
How market consolidation and anticompetitive pricing are hurting communities in Richmond and beyond
The price of fire trucks is dramatically rising throughout the United States, posing a severe threat to emergency response times, firefighter safety, and communities. However, many local governments are fighting back. With a seasoned attorney by your side, your department or municipality can take action to restore fairness and recover compensation.
The Richmond firm of Phelan Petty Injury Lawyers is ready to assist. We understand the challenges that fire departments and local governments are facing as a handful of corporations are accused of putting their profits over public safety. Learn more about how we can help your organization.
Table of contents
- The causes and effects of rising fire apparatus prices in Richmond
- Why cities and fire departments may have legal claims
- Who may be eligible to take legal action in and around Richmond
- Potential financial recovery for your organization
- How participation in these lawsuits works
- A problem that prompted federal scrutiny and a Senate hearing
- Why choose Phelan Petty Injury Lawyers?
- Do you have attorneys who represent fire departments near me?
- Frequently asked questions about the fire apparatus crisis
- Let our law firm assist your fire department and municipality
The causes and effects of rising fire apparatus prices in Richmond
Fire truck prices did not simply begin increasing on their own. Rather, three distinct causes have been identified to explain this problem.
Market consolidation
There are only a few companies that manufacture fire trucks and other equipment. The dominance of the fire apparatus industry by a mere handful of large, powerful corporations has effectively consolidated the market. It’s estimated that just three companies control about 80% of the market, and they enjoy immense pricing power because of it.
When a small number of companies control an industry, there are fewer options for the organizations that depend on that industry. Fire departments often have limited options and may be forced to pay higher prices and then pass the costs on to taxpayers. This has the added problem of stifling important innovations that can save lives.
Limited supply
When the supply of something decreases while demand remains the same or increases, prices are bound to rise. Fire apparatus supplies have steadily decreased in response to market consolidation, and, in turn, there are:
- Fewer plants: Many manufacturing plants have shut down, delivering a significant blow to already strained supply lines.
- Limited production: The plants that have continued to operate can only manufacture so much equipment, and they simply cannot keep up with demand.
- Supply shortages: Plaintiffs allege these scarcities are largely artificial in nature, but they have real effects on fire departments.
New equipment delays
Modern fire departments typically wait much longer than their predecessors for new equipment, including fire trucks. They must increasingly rely on older trucks and equipment to put out fires. Not only does this equipment cost more to maintain, but it can also directly endanger lives in several ways:
- Slower fire suppression: Older fire trucks, pumps, and hoses deliver water less efficiently. Water pressure is often too low, and the equipment can easily break. It takes only a few seconds of inefficiency for a fire to rapidly spread and claim lives.
- Mechanical failures: Aging fire engines are more likely to experience critical mechanical failures when they are most needed. Any breakdown is a problem, but one that occurs during a call can have deadly consequences.
- Risks for firefighters: Older equipment, including but not limited to fire trucks, puts the lives of firefighters at risk. The farther a fire spreads before being extinguished, the more firefighters could potentially be killed or seriously injured.
Why cities and fire departments may have legal claims
Two federal statutes are of particular relevance to the market consolidation that is harming fire departments in Richmond and nationwide:
- The Sherman Antitrust Act: This law prohibits monopolization and business practices that restrict interstate commerce and market competition.
- The Clayton Antitrust Act: This federal statute amended the Sherman Act to prohibit corporate mergers and acquisitions that significantly impair market competition.
Fire departments and local municipal governments are invoking these two laws by filing lawsuits to challenge corporate monopolization of essential fire equipment. The objective of this litigation is to restore fair competition to the fire apparatus industry by:
- Recovering taxpayer funds spent on price-inflated equipment
- Stopping alleged anticompetitive pricing practices involving fire trucks and equipment
- Improving delivery times and industry innovation
- Seeking injunctive relief, where available, to stop alleged anticompetitive practices that affect public safety
Who may be eligible to take legal action in and around Richmond
The fire apparatus pricing crisis has impacted a number of local entities that operate and oversee fire departments, including in the Richmond area. The following may be able to initiate a lawsuit:
- Cities
- Fire districts
- Counties
- Municipal departments
Potential financial recovery for your organization
Every lawsuit involving overpriced fire equipment is different. However, in general, compensation usually takes these forms:
- Treble (triple) damages: Successful antitrust plaintiffs may be able to recover three times the damages they sustained, where available under federal antitrust law.
- Damages: Plaintiffs may seek compensation for higher prices they were allegedly overcharged and forced to pay, along with other legally recoverable losses.
- Attorneys’ fees: To offset the cost of litigation and ensure equal access to the courts, these lawsuits typically request attorneys’ fees and the payment of court costs.
How participation in these lawsuits works
If your fire department, fire district, or local government has felt the pinch of higher equipment prices, limited competition, and delayed response times, it’s important to explore your legal options. When you retain our firm to take legal action, we offer these advantages:
- No upfront cost: Our clients never pay upfront costs like filing and expert witness fees. Moreover, our clients pay nothing unless and until we recover compensation.
- Contingency representation: We handle these cases with no upfront costs because we represent plaintiffs on contingency. If we are not successful, you owe nothing.
A problem that prompted federal scrutiny and a Senate hearing
The fire apparatus crisis has become so serious that it has attracted the attention of the federal government. The U.S. Senate has taken the step of a formal inquiry to determine why prices have increased, new equipment deliveries are being delayed, and fire departments and local governments have complained.
An investigation determined that three companies - REV Group, Oshkosh Corporation, and Rosenbauer - control approximately 80% of the fire apparatus market. This is part of the evidence plaintiffs cite in alleging anticompetitive pricing and monopolization. Plaintiffs will raise this and other evidence to fight back.
Why choose Phelan Petty Injury Lawyers?
Our dedicated trial lawyers handle cases that have real effects on the lives of everyday people. As a personal injury law firm, the settlements we return and verdicts we win bring true justice to individuals and families who are hurting.
Now we are applying this same approach to the fire apparatus industry. We have seen the injustice that firefighters and communities have endured because of unfair market consolidation and unethical pricing practices. We are committed to helping fire departments and municipalities in the Richmond area seek relief.
When you hire our law firm, we do not treat you as just another client file number. Rather, we develop a personalized legal strategy and then apply it from the beginning to the end of your case. You will have an experienced, dependable legal advocate who will answer your questions and concerns and seek the best possible outcome for your case.
Do you have attorneys who represent fire departments near me?
Phelan Petty Injury Lawyers is located at 3315 West Broad Street, Richmond, VA 23230. Our office is just to the west of downtown Richmond and sits between the Museum District and Scott’s Addition Historic District. We are only a short distance from Interstate 195, with quick access to Interstate 64 and Interstate 95.
Frequently asked questions about the fire apparatus crisis
Why have fire truck prices increased so dramatically?
The main causes of the increase in fire truck prices are market consolidation, reduced competition, limited supplies, and the delay of new equipment. Put simply, plaintiffs allege that the three corporations that control a major share of the market have significant pricing power.
What manufacturers are involved?
REV Group, Oshkosh Corporation, and Rosenbauer are the big three companies that control the market.
Can volunteer fire departments participate in litigation?
Yes, if they purchased fire trucks and other equipment that have been affected by anticompetitive market practices. These departments have been no less harmed than the city and municipal departments have.
What information is needed to join?
If your fire department or local government wishes to take legal action, you need to document what was purchased, from whom, and at what price. Payment and other records should substantiate your claims. An attorney can help make your legal arguments based on this and other information.
Is there any cost to municipalities?
There is no upfront cost to participate. We take cases on contingency, which means our clients only pay if we recover compensation for them. If we don’t, the client owes us nothing.
Let our law firm assist your fire department and municipality
The fire apparatus crisis is a growing problem. But taking quick legal action can alleviate the burden that fire departments and municipalities are experiencing. If you represent an organization that has felt the pressure of higher prices and delays, it’s time to learn more about your legal options.
Reach out to Phelan Petty Injury Lawyers. We can review your situation, explain how an antitrust lawsuit can help, and then get started developing a personalized case. Protect your community by standing up to unfair market manipulation and monopolization today.