To: From: Date: Subject: Michael Spangler, President of Big Boy Trucking Cameron Perry, Traffic Manager of Big Boy Trucking October 22, 2013 Four Accidents Between Oct. 13th-19th, Everything Taken Care Of This memo will discuss the cover four accidents that happen last week (October 13th-19th). Everything has been taken care of. There is nothing for you to do. Each accident is detailed on pages 2-5. Main Points There were four trucking accidents last week. Jeff Ross was the only driver was hurt. Mr. Ross is going to miss two weeks. A faulty tire caused each accident. Acme Underwriters Insurance is taking the tire company to court for the cost of all four accidents. The total cost was $105,000. Acme told the claims department to expect a check for the $105,000 in the first half of December. There was a total of $40,000 in cargo damage. Each company was reimbursed for the damages by our claims department. All four companies were happy with the way we handled the situations. None of the companies are dropping Big Boy Trucking. All the faulty tires were purchased in the same transaction from Gig ‘Em Tires in College Station, TX. Ronald McDonald purchased the tires at a discount. Mr. McDonald was informed of the issue. He has found a new tire company in Lubbock, TX. Wreck ‘Em Tires will be Big Boy Trucking’s tire supplier now. The tires are higher quality. All of the Gig ‘Em tires have been replaced across the entire fleet. This cost $50,000. We will not be reimbursed for this amount. Our legal team said it was worth the investment. 1 Denton, TX Accident Summary The accident happened in Denton, TX. The driver was transporting Eagleton Eggs to Walmart. The front left tire blew up. That caused the truck to ride into the curb. The accident did not cause any injuries. The truck was damaged. There was also damage to some cargo. Details Accident occurred on October 14, 2013 on University Boulevard Cause of the accident was a faulty tire Driver was John Hampton Cargo was Eagleton Eggs o 100 crates damaged worth $600. Damage to the front left rim o Damage cost Big Boy Trucking $400. No one was hurt in the accident. Status Our claims department has contacted Eagleton Eggs. We informed them of the incident. We reimbursed them for their damaged cargo. The truck was fixed and is back on the road. Lubbock, TX Accident Summary The accident happened in Lubbock, TX. The driver was transporting Stacy’s Furniture to Ashley’s Furniture. The front left tire blew up. That caused the truck to swerve off rode into ditch. The accident did not cause any injuries. The truck was damaged. There was also damage to some cargo. 2 Details Accident occurred on October 16, 2013 on Highway 82 Cause of the accident was a faulty tire Driver was Janis Harden Cargo was Stacy’s Furniture o 15 couches damaged worth $15,000 Damage to the front left rim and headlight o Damage cost Big Boy Trucking $600 No one was hurt in the accident. Status Our claims department has contacted Stacy’s Furniture. We informed them of the incident. We reimbursed them for their damaged cargo. The truck was fixed and is back on the road. Austin,TX Accident Summary The accident happened in Austin, TX. The driver was transporting Marker‘s Mark Milk to Billy’s Bistro. The front left tire blew up. That caused the truck to ride over curb. The accident caused the driver to suffer a broken toe. The truck was damaged. There was also damage to some cargo. Details Accident occurred on October 17, 2013 on Hippy Sandals Drive Cause of the accident was a faulty tire Driver was Jeff Ross Cargo was Maker’s Mark Milk 3 o Five barrels damaged worth $8,000. Damage to the front two rims and front axle o Damage cost Big Boy Trucking $5,800 Jeff Ross broke his toe in the accident. The injury was covered by his insurance. He will not seek compensation for his injury. Status Our claims department has contacted Maker’s Mark Milk. We informed them of the incident. We reimbursed them for their damaged cargo. The truck was fixed and is back on the road. Ross will take two weeks off and return in November. Tyler,TX Accident Summary The accident happened in Tyler, TX. The driver was transporting BOB’s Televisions to Target. The front right tire blew up. That caused the truck to sideswipe a parked car. The accident did not cause any injuries. The truck was damaged. There was also damage to some cargo. Details Accident occurred on October 18, 2013 on Deer Hollow Street Cause of the accident was a faulty tire Driver was David Upson Cargo was BOB’s Televisions o 15 televisions damaged worth $14,000 Damage to the front right rim, bumper, and headlight o Damage cost Big Boy Trucking $2,600 There was another car involved in the accident. o Owner: Johnny B. Goode o Car: 2013 Mercedes CLA Coupe 4 o Damage: The car was dented along the right side. It also had paint damage. The accident will cost Big Boy Trucking $40,000 in damages. No one was hurt in the accident. Status Our claims department has contacted BOB’s Televisions. We have informed them of the incident. We have also reimbursed them for their damaged cargo. The truck has been fixed and is back on the road. Mr. Goode has been reimbursed for the damages to his car. Our insurance covered Mr. Goode’s claim. Total Costs Damages to Big Boy trucks- $47,000 Damages to cargo- $40,000 Loss of business due to trucks being in the shop- $18,000 Total Costs- $105,000 This memon summarized and detailed the four accidents that happened last week. Everything has been taken care of. Big Boy Trucking is back to the regular schedule. Big Boy should receive a check for $105,000 from Gig ‘Em Tires in December. We have found a new tire company. The old tires have been replaced. There is nothing for you to do. You can email me if you have any questions at cameron.perry@bbt.net. 5