The Supreme Court ruled unanimously today that freight brokers can be sued under state negligence laws if they hire unsafe trucking companies (ones with bad safety records) that later cause accidents, crashes or bodily harm. {Ruling pdf Here}
Freight brokers are the middlemen in the transport system matching available loads with available truckers. Freight brokers have notoriously chosen the cheapest truckers and carrier companies to move freight. However, as of this ruling, federal law no longer shields the broker from liability and insurance claims anymore. Victims can now go after the broker’s insurance in addition to the Truck driver’s and/or carrier.
All of those illegal alien truckers who were hired by sketchy carrier companies will now carry a liability risk for the freight broker who might contract the haul. Ultimately, it is the insurance companies who will drive the change by raising insurance rates on those who would contract with sketchy drivers.
VIA AP – WASHINGTON (AP) — The Supreme Court on Thursday allowed a man to sue a major logistics company after he lost part of his leg in a semi tractor-trailer crash, a decision that could have big ripple effects across the trucking industry.
The justices ruled unanimously in favor of Shawn Montgomery, whose parked vehicle was hit by a speeding truck driver on an Illinois highway in 2017. He wants to sue C.H. Robinson, the country’s largest freight broker by size, over its role in putting the driver on the road despite what he called “serious red flags.”
The decision does not mean Montgomery will necessarily win the lawsuit, which the company is contesting. But the ruling opens the door to increased liability for freight brokers, a key part of the industry.
The Trump administration and companies such as Amazon had argued that letting the suit go forward would expose logistics companies to liability under a “patchwork” of state laws.
[…] The company argued the suit, filed under state law, must be tossed out because brokers rely on the federal government to regulate carriers and federal law trumps state law.
But in an opinion by Justice Amy Coney Barrett, the Supreme Court disagreed. The justices found Montgomery’s claims can move forward because they fall under an exception for safety regulations. The high court overturned a lower-court ruling in the company’s favor.
The decision could increase insurance costs for freight brokers that eventually “cascade through the economy” and result in higher prices for consumers, Justice Brett Kavanaugh wrote in a concurrence joined by Justice Samuel Alito.
Still, “truck safety is a matter of life and death,” Kavanaugh wrote. (read more)
The bottom line is that safe truck driving practices, operated by safe and well-trained truckers, are in everyone’s best interest. Unfortunately, in the past several years this has become a problem as sketchy truck drivers have been recruited by sketchy carriers. The ruling today returns the issue of liability to each of the participants in the trucking sector.
Everyone on the road should have a reasonable expectation of safe driving practices.
