What Montgomery v. Caribe Transport II, LLC Means for Trucking
We cover Supreme Court rulings when they are important to the trucking industry as a whole, such as the one in 2022 regarding COVID-19 vaccination requirements. Here is one that is just as big, if not larger than that. We said we would write a followup article, and here it is!
Earlier this month the Supreme Court released a 9-0 verdict (a relatively rare occurrence in this split Court) that held CH Robinson liable for the actions trucking companies it hires does. But what does it mean for you: the driver or business?
Background
CH Robinson, a freight broker, hired a trucking company that had a Conditional safety rating from the Federal Motor Carrier Safety Administration. This trucking company was Caribe Transport II, LLC, and one of its drivers struck Shawn Montgomery, who then proceeded to sue the drive, the company, and the broker. The question that applied was whether or not CH Robinson had a part to play in the accident by hiring a trucking company with a Codnitional safety rating, and all nine justices said yes.
Results
This creates a reverberating effect for brokers: knowing that they may be liable to pay large sums of money if they hire a company without due diligence, they will certainly hesitate before hiring another Conditional safety rating trucking company unless the rate provided is low enough to justify the risk in safety.
Conclusion
When it comes to the trucking industry, the second Trump Administration (and now the Supreme Court) has a de facto policy: less regulation, unless that regulation leads to more safety, in which case, more regulation. This case outcome holding CH Robinson liable means two things for drivers and trucking companies:
- Brokers will have a higher demand for the safest of drivers, allowing them to negotiate higher rates for being the very best in the business.
- Trucking companies with a Conditional safety rating are in trouble, as they may have to accept deliveries at a low profit margin, break-even, or even a loss as they work hard to bring their safety rating back up.
This is an absolute boon for safe drivers, and less-than-fortunate for those with a lower safety rating.
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