The $604 Million Freight Broker Liability Verdict

"C.H. Robinson does not employ drivers." - C.H. Robinson Chief Legal Officer Dorothy Capers

This May, two courts drew a new line for freight brokerage liability. The U.S. Supreme Court stripped brokers of a federal defense they had leaned on for years. The Texas Supreme Court turned around and told Home Depot it wasn't liable for a fatal crash involving a carrier hauling its freight.

Two companies, both a step removed from the truck. Opposite outcomes. The difference came down to control.

And then, in July, a separate jury found that C.H. Robinson might be responsible for the actions of a driver that did not work for them, but a carrier they hired.

In this episode of Art of Supply, Kelly Barner covers:

- Why a jury decided the driver was C.H. Robinson's "borrowed employee," and how that turned 23% of the blame into 68% of the bill

- What protected Home Depot, and how fast that protection disappears

-  Why the industry's response could pull carriers out of the market you buy from, concentrating volume and raising prices

Links:

Kelly Barner on LinkedIn: https://www.linkedin.com/in/kelly-barner-6884443/

Art of Supply LinkedIn newsletter: https://www.linkedin.com/newsletters/art-of-supply-6895142546301960193

Art of Supply on AOP: http://www.artofsupply.com