A Dallas jury has handed down a roughly $604 million verdict against C.H. Robinson in a case that could reshape liability exposure for any company that arranges freight through subcontracted carriers, including household goods movers and forwarders.
The verdict stems from a March 2021 crash in Jackson, Mississippi, in which a truck driven by an employee of Lupus Superior, a carrier hired by C.H. Robinson to move goods for Arizona Beverages, struck several vehicles, killing three people and injuring others. The driver was also killed. The jury assigned 45% fault to the driver, 32% to Lupus Superior, and 23% to C.H. Robinson.
Notable for IAM members in the United States is that the FMCSA safety ratings didn’t hold up as a defense. C.H. Robinson argued it had properly vetted Lupus Superior, which held a “Satisfactory” FMCSA rating before and after the crash. The jury rejected that defense. In addition, the jury found the driver was effectively working for the broker, not just the carrier. Jurors determined the driver was “operating the vehicle in furtherance of a mission for the benefit of C.H. Robinson and subject to control by C.H. Robinson.”
C.H. Robinson has said it will appeal, but if the verdict is not overturned, it opens a path for plaintiffs to pursue vicarious liability against any company that arranges, rather than physically performs, the service, based on how much control it exercised over the job.
IAM Member Impact: If your operation subcontracts linehaul to independent carriers, members should review what “control” is exercised over those jobs. Dispatch instructions, routing, and scheduling. FMCSA “Satisfactory” ratings remain useful, but having an actual vetting process that includes insurance coverage, driver qualifications, and other safety-related items is essential. Members should also expect continued upward pressure on commercial auto and umbrella liability premiums industry-wide, as nuclear verdicts like this one are increasingly cited by underwriters.
Source: FreightWaves