Freight Broker Liability

bubblehead · Jun 15, 2015

"A recent case, Sperl v. CH Robinson, involved a motor carrier that was under a load brokered to it by CHR. Despite the seeming distance from operating the truck, the jury specifically found that the driver was an agent of CH Robinson at the time of the accident, making CHR vicariously liable for plaintiffs' injuries under the doctrine of respondeat superior. Under this legal theory, a principal may be held liable for the negligent actions of an agent that caused a plaintiff's injury, even if the principal does not himself engage in any conduct in relation to the plaintiff." http://www.jfm-lawfirm.com/news/freight-broker-liability.htm

This is not a new case. The continued trend of Brokers/Carriers taking revenue from the O/O and Fleets as well as lowering driver qualifications for contractors is creating a significant increase of danger to the public at large.

What our your thoughts?

Greg · Jun 15, 2015

Any load , on any truck or van, is the responsibility of all parties involved with the movement of such goods. A carrier, broker, or whoever, should know who they are dealing with. The driver may or may not be an O/O, but the people you as a company deal with , represent you, like it or not.
If a carrier gives a load to a professional driver and receives praise for the good job the driver did, they should also expect repercussions from sending an unprofessional driver to do the same job with less than stellar results.

Mailer · Jun 15, 2015

I guess that's what happens when Risk Management Department didn't understand the term.

independent contractor
noun

ne that contracts to do work or perform a service for another and that retains total and free control over the means or methods used in doing the work or performing the service.

Turtle · Jun 15, 2015

Terms and labels don't matter. Freight brokers have to be very careful in how they treat carriers, and by extension, drivers. Too much control, like certainly requiring a particular routing, but even mandating regular or constant contact, a specific pickup or delivery time, can result in the driver being deemed an agent of the broker (vicarious liability). Too little control and the broker can be found guilty of negligent hiring (or entrustment). The broker has to make sure they carry the proper insurance: Truck Broker Liability, Contingent Auto Liability, and Contingent Cargo Liability. And they need to periodically review each carrier to obtain credit, proof of insurance, CSA scores, and an overall safety evaluation, because if they hire a carrier with a low safety rating or without the proper insurance, the broker is negligent in hiring.

jelliott · Jun 15, 2015

It is also a great risk with the multi carrier model. The broker is not actually validating any insurance on the actual vehicle hauling the freight. It is a very easy lawsuit for negligent hiring in the event of an accident. Think about it in court....so the insurance that you accepted and monitored was not the insurance that covered the units that were running the freight?????

Another reason Load One and a number of other carriers that are brokers have discontinued the use of carriers on that structure.

Mailer · Jun 15, 2015

Turtle said:
Terms and labels don't matter. Freight brokers have to be very careful in how they treat carriers, and by extension, drivers. Too much control, like certainly requiring a particular routing, but even mandating regular or constant contact, a specific pickup or delivery time, can result in the driver being deemed an agent of the broker (vicarious liability). Too little control and the broker can be found guilty of negligent hiring (or entrustment). The broker has to make sure they carry the proper insurance: Truck Broker Liability, Contingent Auto Liability, and Contingent Cargo Liability. And they need to periodically review each carrier to obtain credit, proof of insurance, CSA scores, and an overall safety evaluation, because if they hire a carrier with a low safety rating or without the proper insurance, the broker is negligent in hiring.

Exactly

Mailer · Jun 15, 2015

jelliott said:
It is also a great risk with the multi carrier model. The broker is not actually validating any insurance on the actual vehicle hauling the freight. It is a very easy lawsuit for negligent hiring in the event of an accident. Think about it in court....so the insurance that you accepted and monitored was not the insurance that covered the units that were running the freight?????

Another reason Load One and a number of other carriers that are brokers have discontinued the use of carriers on that structure.

John, that's what we love about you, lead by example. You walk the talk

. Awesome!

deadhead · Jun 15, 2015

Guess when you guys get tired of driving,there always law school...............I forgot there a test before your can go to work

Turtle · Jun 15, 2015

Expediting isn't driving, it's a business. Would you open up a restaurant without knowing the health laws, or without knowing your liability if someone slips and falls in the dining room? You betcha there's a test..

deadhead · Jun 15, 2015

You alway seem to be on edge relax,sorry I was being funny.

Turtle · Jun 15, 2015

deadhead said:
You alway seem to be on edge relax,sorry I was being funny.

The personal judgement about me wasn't really necessary. Be that as it may, the dismissive attitude presented in your statement about not bothering to learn anything about this business beyond 'deliver load, get money' is exactly that of so many drivers out here as it is, especially van (and Sprinters, etc.) drivers. They don't know the rules and regulations or what they should and should not be doing, and many of them don't care, as long as they can 'deliver load, get money.' Making light of it in a dismissive manner, whether you think you're being funny or not, doesn't help the uneducated newbie who reads your post and thinks this insurance stuff is just bunch of crap he doesn't need to worry about. He's got his van and his keys and he's been driving all his adult life, so he's good to go.

jelliott · Jun 15, 2015

I stayed at a holiday inn once.

Negligent hiring and vicarious liability are huge risks in the industry and attorneys are looking for cases. They see the dollars coming out on the awards. Carriers and brokers need to protect themselves and do their diligence. The cowboy days have rode into the sunset.

deadhead · Jun 16, 2015

This wasn't personal. Seem you took ,it that way.

deadhead · Jun 16, 2015

jelliott said:
I stayed at a holiday inn once.

Negligent hiring and vicarious liability are huge risks in the industry and attorneys are looking for cases. They see the dollars coming out on the awards. Carriers and brokers need to protect themselves and do their diligence. The cowboy days have rode into the sunset.

I don't know how hire someone! I was told that a lot of major companies well run a credit check on an person to check his character,I guess they look to see how he paid his bills.If he a flake and owes child support,been sued,has tax liens et.That a red flag for hiring that person. Just because he can hold the steering wheel is no always best guy for your company.A lot of companies don't require there driver to have CDL, does that mean the point system does apply.If I was hiring drivers I want only the best for my company,I'm sure you feel that way. It seem there a lot of drivers are failing the DOT medical exams,and can't a card and there company has to cancel there contract,(example drivers 400 lbs a little over ,a drivers has several heart problem and has not been informed his company, auto accidents et. Employers are not allow to discuss that with you by law,so you don't know.How can you and others companies protect themselves?

deadhead · Jun 17, 2015

deadhead said:
I don't know how hire someone! I was told that a lot of major companies well run a credit check on an person to check his character,I guess they look to see how he paid his bills.If he a flake and owes child support,been sued,has tax liens et.That a red flag for hiring that person. Just because he can hold the steering wheel is no always best guy for your company.A lot of companies don't require there driver to have CDL, does that mean the point system does apply.If I was hiring drivers I want only the best for my company,I'm sure you feel that way. It seem there a lot of drivers are failing the DOT medical exams,and can't a card and there company has to cancel there contract,(example drivers 400 lbs a little over ,a drivers has several heart problem and has not been informed his company, auto accidents et. Employers are not allow to discuss that with you by law,so you don't know.How can you and others companies protect themselves?

After I looked at what carriers are look for as far was hiring someone answer all these questions.I guess the bar is really set low, DUI ok, folony ok,license suspended ok.Forget about a company protecting themselves from lawsuits they need go buy all the insurance they can afford and hold there breath.That seems to answer the character question on hiring.