Most to the media coverage on the US Supreme Court and logistics matters focused on the Court’s recent decision to let stand California’s AB 5 law, which enacted a three-part test that makes it almost impossible for a truck driver to now be classified as a contract employee in the Golden state. (See End May be Near for Independent Truck Drivers in California.)
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| The result, some fear, is brokers – and perhaps even shippers - will no longer be able to rely on federal agency standards for choosing a carrier. |
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But perhaps equally momentous is a June decision to not hear the appeal of a ruling by a lower court that held giant freight broker CH Robinson liable for injuries caused by a carrier and driver that booked a load through its platform
The plaintiff in the lawsuit is Allen Miller. In 2016, he suffered extensive injuries when he was struck by a heavy duty truck on an icy stretch of highway in Nevada. Miller sued C.H. Robinson the next year, arguing that the freight broker had liability for the accident because it breached its legal “duty to select a competent contractor to transport the load.”
As reported by Transport Topics magazine, Robinson appealed a decision by the 9th US Circuit Court of Appeals that assigned liability to the firm, arguing the Supreme Court should reject the lower court decision because it “improperly disallowed federal pre-emption, exposing freight brokers to a patchwork of state regulations.”
In late 2020, the appeals court reversed and remanded the case back to the federal district court, where a judge had approved a summary judgment in favor of C.H. Robinson, saying holding it accountable would violate federal pre-emption.
In its filings, C.H. Robinson argued that the motor carrier it hired was in good standing with the Federal Motor Carrier Safety Administration, and that as a broker, it should not be responsible for a motor carrier’s negligence.
The actual shipment was provided to CH Robinson for brokerage by retailer Costco, and involved moving feight from Sacramento to Salt Lake City. Robinson then matched carrier RT Service to the load.
Working for RT Service, as he traveling eastbound on Interstate 80 in Elko, Nev. driver Ronel Singh lost control of the truck, which then crossed the median and struck a vehicle traveling westbound, seriously injuring Miller the plaintiff.
Miller in his lawsuit agued that C.H. Robinson should have noticed several “red flags” that should have caused C.H. Robinson to further investigate RT Service as a carrier.
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Attorney Rob Moseley, in a brief supporting C.H. Robinson on behalf of 12 large motor carriers., wrote in the filing that “Although truck accidents and liability of motor carriers are as old as the combustion engine, the concept of seeking to hold a broker liable for the actions of a motor carrier is a relatively new phenomenon.”
He added that “Broker liability claims include allegations that brokers acted negligently in hiring an unsafe (albeit federally approved and insured) motor carrier or by integrating the broker’s transportation management practices too closely with the motor carrier’s operations.”
The result, some fear, is that brokers – and perhaps even shippers - will no longer be able to rely on federal agency standards for choosing a carrier.
Any thoughts on this decision? Let us know your thoughts at the Feedback section below.
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