Originally published at: Broker liability ruling: Carriers, brokers, analysts weigh in - FreightWaves
Industry participants say asset-based carriers are likely the winners following the Supreme Court’s landmark ruling on freight broker liability.
In the aftermath of the SCOTUS ruling in Montgomery, the industry needs to accept that negligence is not objective. It is subjective and a matter of a jury’s informed, subjective fact-finding determination on the merits after hearing a plaintiff and defendant each make their case as to the specific evidence in each particular case.
Even if TIA had not FAILED to get their negligent hiring standards bill passed 10 years ago, here we still would be dealing with a new allegation of hiring illegal immigrant carrier/truckers that was never conceived of in 2016 and was not covered by their proposed legislative solution. There will always be something new that comes up.
There is no magical get-out-of-negligence-free card. To ask for one from FMCSA now under the guise of Federal preemption will be just as futile in the long run. The days of wine and roses, immunity, and impunity are over.
Each jury will always consider all the facts, sum, and substance of each case, apply state law, and make its determination. This risk exposure is a cost of doing business and can be mitigated through E&O insurance but not eliminated.