A unanimous Supreme Court ruling earlier this year placed renewed focus on how freight brokers assess carriers. In a new episode of The Intermodal Logistics Podcast, Marc Blubaugh - Partner and Co-Lead of the Transportation & Logistics Practice at Benesch Law - returns to explain what the Court’s 9-0 May ruling in Montgomery v. C.H. Robinson means for the industry, and why its impact may be smaller than some worry.
Marc walks through the facts of the case, including the key phrase the justices considered when evaluating the safety exception under the Federal Aviation Administration Authorization Act (F4A). He explains the ruling establishes a consistent precedent, even if it's not the outcome many in the freight community hoped for.
At the same time, Marc emphasizes that every liability case turns on its own facts - the decision doesn't mean freight brokers should expect a wave of verdicts against them. He points to the recent $604 million judgment against C.H. Robinson in a separate proceeding, cautioning not to draw a direct connection between that case and the Supreme Court’s ruling.
Rather than discarding their carrier networks and starting over, Marc recommends that brokerages work with their insurance partners to establish clear, documented carrier selection standards - and train everyone responsible for applying them. To that end, he also highlights the role of the Federal Motor Carrier Safety Administration (FMCSA) in vetting carriers and improving the information available to logistics professionals as they evaluate carrier risk. And in a bit of a gear shift, Marc also tells us about an unrelated discussion going on in the FMCSA that could affect how brokers, carriers and shippers do business.
Find more from Marc at www.beneschlaw.com.
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