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Note 10 - Commitments and Contingencies
 3 Months Ended
Mar. 31, 2012
Commitments and Contingencies Disclosure [Text Block]
Note 10.            Commitments and Contingencies

From time-to-time, we are a party to ordinary, routine litigation arising in the ordinary course of business, most of which involves claims for personal injury and property damage incurred in connection with the transportation of freight.  We maintain insurance to cover liabilities arising from the transportation of freight for amounts in excess of certain self-insured retentions.  In management's opinion, our potential exposure under pending legal proceedings is adequately provided for in the accompanying consolidated condensed financial statements.

On March 13, 2012, a jury in the United States District Court for the District of Arizona entered a damage award of approximately $13.2 million related to a claim filed on December 8, 2009 by Carrie Bachrach and Randolph Bachrach, as plaintiffs, versus Covenant Transport, Inc. and one of our former drivers, as defendants. The damage award arises out of an accident that occurred in September 2008, involving a truck operated under Covenant’s authority. Under the terms of the commercial trucking insurance program that we had in place in 2008, we retained liability for up to $4.0 million with respect to the accident. We have third party insurance in place covering all amounts of the damage award in excess of such retention, excluding our pro-rata share of related out-of-pocket expenses. We recorded a $4.0 million charge representing our self-insured retention in respect of this accident in the consolidated financial results of the Company in 2008. Accordingly, the Company’s exposure was previously recorded and therefore the damage award did not impact the operating results for our 2012 first quarter. Under the terms of our insurance policies, the Company is the primary obligor of the amount of the damage award, and as such, the Company has reported a $13.2 million receivable from the third party insurance provider in other assets and as a corresponding accrual in the long-term portion of insurance and claims accruals in the consolidated condensed balance sheet at March 31, 2012. The Company and its insurers are evaluating alternatives, including appeal of the damage award. No assurances can be given regarding the outcome of such appeal.

Our primary auto liability insurance policy includes a policy release premium refund of up to $4.0 million per year, if certain losses are not met and we were to commute the policy. This policy includes coverage for occurrences in excess of $1.0 million up to $10.0 million per policy year. We did not elect to commute the policy for the April 1, 2010 through March 31, 2011 policy year. However, we are in the process of reviewing all open claims from the April 1, 2011 through March 31, 2012 policy year. We have until October 1, 2012 to notify the insurance carrier if we intend to commute the policy for the policy year ended March 31, 2012.  If we elect to commute the policy, the return of premium would be reflected as a reduction in insurance and claims expense in the period in which we notify the insurance carrier of our intent to commute the policy and are satisfied that the related return of previously paid premium is probable.  No amounts have been recorded related to the potential premium refund in the consolidated condensed financial statements as of and for the period ending March 31, 2012.