lunachic
BITE ME !
John D. Schulz, Contributing Editor -- Logistics Management, 4/9/2009
In a move that could have chilling repercussions for freight brokers and the third-party logistics (3PL) industry, an Illinois jury has awarded $23.8 million in damages against C.H. Robinson Worldwide, the nation's largest truck broker.
In what is believed to be the largest injury verdict ever in Will County, Ill., a jury recently awarded $23.8 million to three plaintiffs who sought compensation for two deaths and one serious injury that resulted from a 2004 vehicle accident near Plainfield, Ill.
The case involved a multiple vehicle accident on Interstate 55 in 2004. DeAnn Henry, the driver of a tractor trailer, lost control of the truck and rear-ended multiple vehicles. The collisions caused the deaths of two individuals, Joseph Sperl, 66, and Thomas Sanders, 42, and serious injuries to William Taluc, 30.
Henry was an independent contractor for Toad L. Dragonfly Express, a Utah-based trucking company hired by C.H. Robinson, one of the largest 3PLs in the country with $8.6 billion in revenue last year that handles 7.3 million shipments a year through 228 branches with 8,000 employees. The driver was later found to have been driving on a suspended license with falsified log books.
The jury found CHR to have “vicarious liability,” which meant that Dragonfly Express was considered part of the brokerage company instead of an independent contractor.
What other brokers and 3PLs fear is that this case could set a precedent to increase their liability and insurance premiums. CHR, which is planning an appeal, is insured through a $5 million deductible. If the award holds, analysts estimate it would mean about a 2-cent per share hit on CHR’s income per share.
The deep-pockets nature of this case is what other brokers and 3PLs fear. Fortunately for them, jury awards are not considered precedent-setting cases. Only judges’ rulings can set precedents in future cases, lawyers and other 3PL officials said.
Even though both the motor carrier and driver admitted liability, they had limited insurance coverage. That is what spurred lawyers at the Chicago-based Healy Law Firm to go after CHR, which argued that Henry was an independent contractor with no legal connection in this matter.
Angie Freedman, C.H. Robinson vice president, called the case a “tragic accident with very real losses for the families involved, but said CHR was not liable for the negligence of the carrier and driver.
“We do not believe that the facts of this case or the law support holding C.H. Robinson liable for the carrier’s and driver’s negligence, and we are disappointed with the jury’s decision and the damages awarded,” Freedman said. “There have been no allegations that C.H. Robinson was negligent or that our actions were unsafe.”
Freedman said CHR would “continue to pursue relief from the verdict through all available legal means,” likely through an appeal.
Martin Healy, a trucking and product liability attorney in
In a move that could have chilling repercussions for freight brokers and the third-party logistics (3PL) industry, an Illinois jury has awarded $23.8 million in damages against C.H. Robinson Worldwide, the nation's largest truck broker.
In what is believed to be the largest injury verdict ever in Will County, Ill., a jury recently awarded $23.8 million to three plaintiffs who sought compensation for two deaths and one serious injury that resulted from a 2004 vehicle accident near Plainfield, Ill.
The case involved a multiple vehicle accident on Interstate 55 in 2004. DeAnn Henry, the driver of a tractor trailer, lost control of the truck and rear-ended multiple vehicles. The collisions caused the deaths of two individuals, Joseph Sperl, 66, and Thomas Sanders, 42, and serious injuries to William Taluc, 30.
Henry was an independent contractor for Toad L. Dragonfly Express, a Utah-based trucking company hired by C.H. Robinson, one of the largest 3PLs in the country with $8.6 billion in revenue last year that handles 7.3 million shipments a year through 228 branches with 8,000 employees. The driver was later found to have been driving on a suspended license with falsified log books.
The jury found CHR to have “vicarious liability,” which meant that Dragonfly Express was considered part of the brokerage company instead of an independent contractor.
What other brokers and 3PLs fear is that this case could set a precedent to increase their liability and insurance premiums. CHR, which is planning an appeal, is insured through a $5 million deductible. If the award holds, analysts estimate it would mean about a 2-cent per share hit on CHR’s income per share.
The deep-pockets nature of this case is what other brokers and 3PLs fear. Fortunately for them, jury awards are not considered precedent-setting cases. Only judges’ rulings can set precedents in future cases, lawyers and other 3PL officials said.
Even though both the motor carrier and driver admitted liability, they had limited insurance coverage. That is what spurred lawyers at the Chicago-based Healy Law Firm to go after CHR, which argued that Henry was an independent contractor with no legal connection in this matter.
Angie Freedman, C.H. Robinson vice president, called the case a “tragic accident with very real losses for the families involved, but said CHR was not liable for the negligence of the carrier and driver.
“We do not believe that the facts of this case or the law support holding C.H. Robinson liable for the carrier’s and driver’s negligence, and we are disappointed with the jury’s decision and the damages awarded,” Freedman said. “There have been no allegations that C.H. Robinson was negligent or that our actions were unsafe.”
Freedman said CHR would “continue to pursue relief from the verdict through all available legal means,” likely through an appeal.
Martin Healy, a trucking and product liability attorney in
