Commodity BrokersIndustry news

The list grows: 2 more cases proceeding on broker liability

Recent federal court developments involving J.B. Hunt and AONE Brokerage highlight growing legal scrutiny over third-party logistics liability and hiring practices.

By Editorial DeskPublished Updated
The list grows: 2 more cases proceeding on broker liability
Photo: FreightWaves

Two new legal challenges are progressing through federal courts, adding to the body of litigation concerning the liability of freight brokers. According to FreightWaves, these cases follow a significant Supreme Court decision that narrowed federal protections for brokers. One lawsuit in Arizona involves J.B. Hunt, which is seeking a summary judgment to dismiss claims stemming from a fatal 2023 crash. The plaintiffs argue the firm was negligent in selecting a carrier with a history of safety violations and inexperienced drivers.

In a separate Nevada case, a judge recently denied summary judgment for AONE Brokerage Company LLC. This litigation addresses the complexities of double-brokering after a multi-vehicle accident resulted in a fatality. The court noted that the brokerage continued to work with a subcontractor known for unauthorized load shifting. The presiding judge suggested that contracting with unlicensed entities could be considered unreasonable because such practices may lead to higher risks by putting dangerous drivers on the road.

These developments coincide with broader industry litigation, including high-stakes appeals by C.H. Robinson and the Penske network. The central legal dispute often hinges on whether brokers are shielded by federal aviation laws or subject to state-level safety exceptions for motor vehicles. As J.B. Hunt maintains it is not vicariously liable for the actions of independent carriers, plaintiffs contend the company "ignored (its) dangerous history of safety alerts" when arranging the transportation of goods.

Source. Reporting by FreightWaves. This brief was written by the Trade Flow Insight desk from that reporting; facts and figures are attributed to the original publication.

Editorial DeskTrade Flow Insight. Reporting and market notes compiled by the Trade Flow Insight editorial team.

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