State Negligence Broker Liability Claims Allowed by Supreme Court for Trucking Subrogation

Frequently, freight brokers attempt to deny subrogation claims for cargo damaged in transit on a truck by arguing that they are accorded broker status and do not have the same strict liability as a ‘Motor Carrier’ under The Carmack Amendment.

However, a recent action by the United States Supreme Court this summer supports subrogated insurers in pursuing recovery from brokers who were traditionally not seen as likely responsible parties for cargo loss or damage.

One party in the case, C.H. Robinson, is an American Fortune 200 company that operates, in part, as a freight broker -- that is, as an intermediary that connects shippers who have goods with motor carriers to move the goods.

The company’s own website describes its contractual relationships with over 63,000 transportation companies, including motor carriers, railroads, air freight, and ocean carriers.

According to the court record, in 2016, C.H. Robinson hired a motor carrier with a history of safety violations.