Please see this article (Broker Liability Article.pdf) regarding a case involving CH Robinson.  This is interesting from the standpoint that a broker has been successfully brought in to pay on an auto liability case.  Granted CHR had some measures in place that put them in a position of being deemed as in “control” over the outside carrier by making certain demands of performance from the outside carrier.  Make sure in your brokerage operations that you are maintaining a solid position as the “middle man” and not ascertaining any type of control over the freight or the carrier.  Simply pass the shipper’s load and performance requirements through to the carrier without making either of them your own.

Interestingly, I think this case could have more impact on shippers.  As stated in the article CHR was in fact the owner of the freight and had their own freight manager in place that was making performance requirements of the carrier, this may open even more opportunities for brokers to become the liaison between shipper and carrier, because in doing so the shipper adds an additional layer of “insulation” between themselves and the outside carrier.  Currently many shippers have direct contracts with outside carriers and in those agreements, as we have all seen, they make all sorts of demands as to performance of the motor carrier that could put them in a difficult position should they find themselves next in line

No matter what, this is still a giant leap for the courts to make from Shipper, or broker, being liable in a case where the driver clearly erred, but in an attempt to seek deeper pockets the attorneys successfully turned the spotlight onto the deepest pockets.  The bottom line is that CHR was not making any type of hiring or firing, or job requirement decisions for the motor carrier, and therefore had no control over who was driving the truck at the time of this unfortunate incident, however, in this day and age, someone is going to be expected to pay and CHR was next in line. 

It might be a good time to look into that umbrella policy again.

Brett Krause