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.




