The Haul of Fame
The Supreme Court just dropped a unanimous 9-0 decision in Montgomery v. Caribe Transport (C.H. Robinson), reversing the Seventh Circuit and completely changing the freight industry forever. The high court ruled that Shawn Montgomeryāa truck driver who tragically lost his legācan pursue his negligent-hiring claim against freight broker C.H. Robinson. Despite the US Government, FMCSA, and US Commerce arguing that brokers shouldn't be liable, the Supreme Court sided with the victims and their families. What this means for the industry: - [ ] Broker Nightmare: 30% to 50% of freight brokers could go out of business. - [ ] Insurance Spike: Expect freight broker insurance to jump 5x to 10x. - [ ] Lawsuit Wave: Every major truck accident case will now look to sue the broker. Brace yourself. - [ ] The Due Diligence Trap: Since 94% of carriers have no safety rating from the FMCSA, what is considered "adequate due diligence"? If a driver uses an illegal CDL or has a conditional rating, is it now the broker's fault? The era of brokers claiming automatic immunity is officially over. __________________________________ Montgomery v. Caribe Transport The Seventh Circuit is reversed. The case goes back for proceedings consistent with the opinion. Shawn Montgomery, the driver who lost his leg when Yosniel Varela-Mojena veered off course in a Mack Truck hauling plastic pots through Illinois, can now pursue his negligent-hiring claim against C.H. Robinson.
43 episodes
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