Transportation, Distribution and Logistics Alert Newsletter -- July 2012: Recent Cases Illustrate Possibility of Substantial Verdicts Against Transportation Brokers

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Since the Schramm v. Foster, 341 F.Supp.2d 53 (D. Md. 2004), transportation companies have been aware of the possibility of suits and verdict against transportation brokers. This is significant because many carriers also broker loads, whether through a separate company or simply another function of their primary business. Transportation companies, therefore, need to be aware of the liability exposure when acting as a transportation broker.

Plaintiffs typically proceed against transportation brokers on theories of negligent hiring and negligent entrustment for retaining carriers that are deficient in some way, typically in their safety standards. Three recent verdicts illustrate the growing popularity of such claims by plaintiffs.

Please see full alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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