liability issue?

[larrybadger]

The following segues from the forum topic: "~ RISK ~ LIABILITY ~ !!! HAZMAT !!!" about the risks involved in transporting hazmat. The hazmat discussion got me to thinking about liability issues in general.
The following scenario is based on a legal ruling which was announced February 5, 2005; in which the parents of a frozen embryo that was destroyed (in error) at a Chicago fertility clinic are entitled to file a wrongful-death lawsuit.

Full text available at: http://www.suntimes.com/output/news/cst-nws-egg05.html

While this ruling may or may not be thrown out on appeal, it exposes a liability threat possibly being borne (no pun intended) by many different parties. The preceding opinion offered in the previous sentence is my own 100% unqualified opinion, as I am neither a lawyer nor have I ever played one on TV, nor have I consulted any attorney about the HYPOTHETICAL scenario I am about to put forth. Let us say you as an O/O are contracted with XYZ Expediting, Inc. (XYZ) and are transporting a pallet load of materials from Point A to Point B. Let us say for this HYPOTHETICAL example, it is a container full of frozen embryos being moved from one facility to another. On the way to transport this load, your reefer unit has a breakdown and the load is no longer frozen at delivery. Per the legal ruling mentioned above, I am wondering what percentage of liability you as an O/O are responsible for? Would XYZ Expediting, Inc's liability insurance cover the liability issues? Or would some of the liability be assumed to the O/O of the faulty equipment? A wrongful-death lawsuit these days could potentially be a multi-million dollar judgment. Note this is a HYPOTHETICAL scenario brought about by my fertile (?) mind, and probably too much time on my hands, eh?

NOTE: The preceding is meant simply to be a thought-provoking scenario; it is NOT an opinion about when "life" begins or is viable, it is NOT meant to start a debate about anything; it is very simply meant to promote discussion about potential liability issues.

EXPERIENCE DISCLAIMER: I have zero experience in the commercial transportation industry, so the HYPOTHETICAL scenario I have offered may not even be anything to be concerned about; I just have an enquiring mind.


Larry Badger
Plainwell, Michigan
Future expediting company driver
Stay-at-home Dad, 2000-
25 years self-employed in landscaping business

 

[LDB]

I'm sure there would be exposure. The amount would be limited by what the plaintiffs could get out of you. The carrier liability coverage wouldn't be nearly enough and might not be enough for even one much less a container full. The only salvation might be if counsel did an assessment and determined the O/O was such a small fish it wasn't worth including him. I doubt that would happen though. Interesting post that reinforces the responsibilities when under a load.

Leo
truck 4958

Support the entire Constitution, not just the parts you like.

 

[terryandrene]

The short answer to Larry's hypothetical: Most, if not all, expediters do not contract to transport people.

If, in the off chance that they did, I suspect every individual and company in the chain of custody would be exposed to liability. If the owner/operator of ABC Corporation was leased to XYZ Carrier, and the owner was driving the embryo laden truck, and the owner was deemed to be negligent in the operation of his reefer unit, his personal assets, in addition to his corporate assets, would also be exposed.

 

[davekc]

Any situation as mentioned above would leave you exposed in several different ways. Probably the two biggest issues are if you really have the specified coverage and in what amounts. Even if for example you have a million coverage, but a judgement is for 2 million, you are exposed on the difference. Many folks are not really aware of this. Many owner operators are only carrying the bare minumum on coverage for hazmat hauling. Again, if a spill or accident happens and you are found responsible, guess who they are coming after once your insurance is tapped. Clean up on certain hazards can run well past what you may be insured for. You want to make sure you really understand those risks.
Davekc
owner
20 years