In December 2017 motorist Shawn Montgomery received life changing injuries when his vehicle, which was stopped on the shoulder of Interstate 70 in Illinois, was struck by a tractor trailer which had veered off the road. Montgomery sued the motor carrier, Caribe Transport II and the freight broker, C. H. Robinson Worldwide. Montgomery’s attorneys argued that C. H. Robinson should have known that Caribe Transport II was an unsafe choice to partner with.
At the time, the carrier was operating under a “conditional” safety rating from the Federal Motor Carrier Safety Administration (FMCSA) and the attorneys argued that this constituted negligent hiring. C. H. Robinson argued that since the shipment the truck was hauling was interstate commerce, they were exempt from claims made under state law. The initial court verdict and several appeals gave differing outcomes. The case was appealed to the U. S. Supreme Court.
The Supreme Court ruled unanimously that federal law does not shield freight brokers from state lawsuits alleging negligent hiring. Justice Brett Kavanaugh, joined by Justice Samuel Alito, stressed that the ruling should not be understood as opening brokers to routine liability. Brokers that act reasonably and select reputable carriers “should be able to successfully defend against state tort suits,” he emphasized.
In response to this ruling, the Transportation Intermediaries Association (TIA) issued the following statement: “While brokers are fully committed to safety and to working with federally licensed motor carriers in good standing, the decision imposes an impossible task on brokers — effectively asking them to evaluate the safety of a given motor carrier despite having been deemed safe to operate on public roads by the federal government. This is like asking travel agents to evaluate the safety of a given airline despite the fact that the airline has been licensed to fly by the federal government. Moreover, since brokers do not employ motor carrier drivers directly, they do not have access to the records and data required to perform the safety functions that plaintiff lawyers contend they must. We are working with our members to assess potential next steps to mitigate the consequences of the Supreme Court’s decision.”
TIA has filed a petition for rulemaking with the FMCSA asking them to develop a Motor Carrier Safety Standard and release of a High-Risk Motor Carrier List to identify risky carriers. TIA has stated that currently more than 90% of motor carriers operate without a safety rating. The Supreme Court may argue that brokers who perform due diligence may be able to successfully defend against a suit, but the remaining question is what constitutes due diligence if the motor carrier is unrated?
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