Freight broker C.H. Robinson Worldwide says it will appeal a $604 million verdict handed down by a Dallas County, Texas jury after finding the company negligent in hiring a motor carrier involved in a fatal 2021 crash. The pileup on Interstate 20 in Mississippi killed three people and injured two others when a rig operated by carrier Lupus Superior struck stopped traffic.
The verdict is the first major trial outcome against a freight broker since the U.S. Supreme Court ruled unanimously in May that federal transportation law does not preempt state negligent hiring claims against brokers, a decision that opened the door to lawsuits like the one against C.H. Robinson.
Company Chief Executive Officer Dave Bozeman addressed the judgment during C.H. Robinson's second quarter earnings call, arguing the carrier involved held the Federal Motor Carrier Safety Administration's highest safety rating both before the crash and after a subsequent federal review, and had completed nearly 270 prior shipments for the company without incident. Bozeman said C.H. Robinson does not employ drivers or supervise carrier operations and should not be held vicariously liable for an independent contractor's actions.
Bozeman also warned that verdicts of this size, if they become standard, would raise transportation costs and disrupt the movement of goods nationally. The company is calling on Congress and federal regulators to establish uniform liability standards for freight brokers. The case remains subject to post-trial motions and an appeals process that could take years to resolve.
Source: Commercial Carrier Journal – https://www.ccjdigital.com/business/insurance/article/15831229/ch-robinson-appeals-texas-verdict-warns-freight-market