Sky Transport Solutions
Montgomery v. Caribe Transport - How Freight Brokers Can Now Be Held Liable for Using Unsafe Carriers
In a surprising ruling, the United States Supreme Court caused an upset in the trucking industry. Moving forward, brokers have a clear responsibility to ensure the drivers they hire are safe to operate.
Background of the Case
On December 7th, 2017, Shawn Montgomery, was severely injured after his tractor trailer was struck by a commercial driver hired by Caribe Transport II, LLC. Montgomery sued the company and the freight broker, C.H. Robinson Worldwide, Inc, claiming that the broker and carrier was negligent in hiring a driver that was likely to cause an accident based on available safety data. At the time of hiring, Caribe Transport II, LLC had a Conditional FMCSA safety rating, with documented deficiencies with hours of service, maintenance, and crash rates. In defense, C.H. Robinson argued that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) protected their company from state-level negligent hiring lawsuits. These arguments were significant enough to spark a string of court cases that eventually came before the Supreme Court.
In a 9-0 ruling, the Supreme Court found in favor of the plaintiff, Montgomery. The ruling established that freight brokers can be sued for negligent hiring if an injury or accident happens while employed by said broker, and the broker did not perform adequate research. Brokers can no longer use federal preemption to dismiss state-level negligence claims, meaning:
1. Injured parties are allowed to sue a broker for the actions of a motor carrier.
2. A broker must perform due diligence in hiring a carrier, lest they risk lawsuit
3. Federal protections do not protect a broker from doing their part to ensure safety.
If You Are a Driver
While this ruling does not impact drivers directly, brokers being responsible for ensuring the safety of the carrier means stricter hiring standards. Having a lower than average safety rating can affect your chances of being hired. Moving violations, collisions, failing drug screenings, all of these things already affected a driver’s chance of hiring. As of this ruling, they can end a career with most brokers.
Adopting better driving habits can help keep you in good standing. You can check your driving record and even contest a violation by using the FMCSA's DataQs system.
If You Operate a Motor Carrier
If you’re unsure of your carrier's safety rating or if you want to learn more about the safety rating of a driver in your fleet, you can see your score directly on web resources such as the SAFER or FMCSA online systems.
You may expect more follow-up questions about safety standards or proof that your carrier prioritizes safety. If you are unsure of your drivers or their histories with safety, performing an informal audit yourself can save you some surprise if or when a potential business partner mentions concerns around safety.
If You Operate a Freight Brokerage
Freight brokers will have a greater burden of responsibility when coordinating shipments. Thankfully, the burden is what the court considered an ordinary level of care. At the very least, you need to do your research. Ignorance of a carrier’s history does not protect a broker as it once had. In fact, not having proof of research could be considered enough to make a broker legally responsible.
Like a driver or carrier, you can research motor carriers and drivers to ensure they meet basic standards of safety. You can check their history of vehicle maintenance and safety procedures so that you can make an informed choice about a business partner.
Other Considerations
The consequences of this ruling are still unfolding, and it will take time to fully grasp the changes that will happen in the trucking industry. With a federal protection gone, the market will likely shift towards better safety ratings, clean records, and established transparent history. Carriers with established reputations of safety and reliability will be most sought after, but new drivers can still benefit from adopting safe practices today.
If you would like to know more about safety standards in the trucking industry, or how you can improve, Sky Transport Solutions can keep you informed on how to best move forward as a broker, a carrier, or a driver.