the evidence surrounding the driver and carrier, few
anticipated the extent to which Robinson would find itself
embroiled. For the first time in memory, a freight broker
was being held liable for damages in a personal injury case
despite assertions that the trucker and driver were not on its
payroll and with no proof that Robinson had control over
the driver’s actions or his behavior.
WORRISOME PRECEDENT
For brokers and 3PLs, the world had suddenly changed.
They feared an adverse court ruling would open the floodgates for a torrent of personal injury cases filed by plaintiffs’
attorneys looking for deep-pocketed shippers and brokers to
reimburse suffering families. No longer would the plaintiffs’
bar be constrained to pursuing small-time truckers with
minimal assets.
In August 2004, Federal District Court Judge J. Frederick
Motz issued a ruling that effectively confirmed the industry’s worst fears. While denying most of the plaintiffs’ claims
and absolving Robinson of much of the alleged liability,
Motz ruled the company could have done a better job of vet-
accolades
ting the issues behind Groff’s “marginal” safety rating. The
contentious issue of “negligent hiring” was now on the table.
Motz noted that Robinson had a policy of purchasing liability coverage exceeding the $750,000 worth of coverage
required by law of truck owner-operators. It did so, the
judge concluded, “both to protect itself and its customers”
from claims arising from catastrophic accidents where the
damages could surpass the minimum coverage levels.
Motz sent a clear message to brokers and 3PLs: By market-
ing themselves as one-stop shops for transportation services,
they were exposing themselves to unprecedented degrees of
risk. Robinson, the judge wrote, had “actively interjected
itself into the relationship between shipper and carrier, and it
has chosen to do business in a context heavily tinged with the
public interest. I find the common law imposes upon it a
duty commensurate with its undertakings.”
Robinson’s insurer eventually settled with the families for
a sum that was not disclosed but was believed to be $4 mil-
lion. That was far from the end of it, however. Motz’s rul-
ing, and its language, gave the plaintiffs’ bar all the motiva-
tion it needed to open a new frontier in transport liability
law. Corporate attorneys accustomed to the
routine of claims arising from the loss or dam-
age to inanimate objects would now find them-
selves playing in a game with the highest stakes
of all: human life.
Today, shippers, brokers, 3PLs, and their attorneys still worry that the fluid nature of the law
surrounding broker liability gives plaintiffs’
attorneys the latitude to pursue shippers, bro-
kers, and 3PLs for claims arising from incidents
the companies have no control over. Their
increased exposure, in turn, will inevitably lead
insurers to raise liability premiums, reduce the
availability of coverage, or both, thus driving up
costs for the entire industry, legal experts warn.
As many feared would happen, plaintiffs’
attorneys have tested the “broker liability” the-
sis several times since 2004 by naming brokers
and 3PLs as defendants in various personal
injury cases. Several of them have involved
Robinson, which as the largest broker in the
land is a natural target for the plaintiffs’ bar.
All this has left some in the fraternity with a
bad case of stomach churn. “I’ve lost a lot of
sleep” over the Maryland case, Clark Van
Orman, senior manager, corporate freight
claims and carrier contract compliance at
Houston-based food-service giant Sysco Corp.,
said in April at the annual meeting of the
Transportation & Logistics Council, a group of
lawyers, carriers, practitioners, and freight
claims professionals. “I feel like a blind man trying to feel color with his fingertips.”
Total Quality Logistics’ Dayton, Ohio, satellite office was voted one
of the city’s 2012 Best Places to Work. … PepsiCo has presented
Saddle Creek Corp.’s Lakeland, Fla., campus, with its 2011
Warehousing Excellence Award for detached distribution centers.
Saddle Creek also received Pepsi’s Third Party of the Year Award for
playing an integral role in the company’s warehouse delivered system. … Clark Material Handling Co. has presented its Dealer of the
Year award to Valley Industrial Trucks Inc. of Youngstown, Ohio. …
The Virginia Maritime Association (VMA) presented its
Distinguished Service Award to Bill Franks, president and CEO of
The CrossGlobe Group. The VMA also honored Capt. Mark Ogle,
commanding officer, U.S. Coast Guard Sector Hampton Roads, with
its Port Champion Award. … The European Logistics Association has
honored Penske Logistics and Ford Motor Co. with this year’s
European Award for Logistics Excellence. … Old Dominion Freight
Line has been named one of America’s 100 Most Trustworthy
Companies by Forbes magazine. In addition, company’s drivers Tim
Whitley and Art Quales earned top awards at the North Carolina
Truck Driving Championships, while Bill Hill was named state grand
champion at the Idaho Trucking Association’s event. … Wynright
Corp. has announced the winners of its Top 10 Integrator-Distributors for Automotion Conveyor Solutions award: Hy-Tek
Material Handling Inc. of Kentucky; Kuecker Logistics Group of
Missouri; The Beacon Group of Massachusetts; Conveyroll of Mexico;
Conveying Solutions of Georgia; DS Handling of Ontario, Canada;
ETi Integrators of Georgia; Warehouse Systems Inc. of Illinois; World
Source of Illinois; and Designed Conveyor Systems of Tennessee.
