Many companies in South Carolina and nationwide wrongly assume that their liability leaves with the freight once a commercial truck pulls away from the loading dock. Commercial transportation law is far more complicated than that, and businesses that cut corners when planning their logistics can pay a steep price. When a fatigued or poorly qualified driver causes a serious crash, the victims’ attorneys, such as those at Cavanaugh & Thickens, will follow the chain of responsibility back to the company that arranged the shipment. As a result, shippers and freight brokers who fail to properly vet their carriers often end up financially tied to costly truck collision settlements.
Understanding Negligent Hiring in Logistics
The legal concept of negligent selection means that a business can share the blame for a crash if they deliberately or carelessly partner with a motor carrier known to be dangerous. Shippers have a distinct legal obligation to hire competent logistics partners, meaning they cannot simply turn a blind eye to a fleet’s operational history just to secure a cheaper freight rate. When a catastrophic collision happens, investigators will immediately look to see if the hiring company bothered to review the fleet’s historical roadside inspection and violation data before entrusting them with a heavy load. If a business hands over an 80,000-pound shipment to a company with a suspended license or a notoriously terrible driving history, the courts view that business as a contributing factor to the ensuing disaster.
Recognizing the Red Flags of Dangerous Carriers
There are visible signs that a company is subpar and will put public safety in jeopardy. A trucking company with major mechanical breakdowns, repeated hours of service violations, and major crash involvement is a public safety threat and will be involved in a crash that is likely preventable. Sometimes, brokers fail to perform a basic background check on the owner-operator, missing glaring details like prior reckless driving citations or a pattern of substance abuse violations. If a shipper chooses to bypass basic safety protocols and hands their goods over to a statistically dangerous contractor, they essentially endorse that risky behavior and invite severe legal scrutiny when those specific behaviors inevitably result in a serious highway tragedy.
How Accessible Data Eliminates Plausible Deniability
The data that is available about carriers is extremely robust. The U.S. Department of Transportation utilizes algorithms to prioritize and evaluate carriers. With all of the data that is available, a company really can’t say they were unaware of a partnering carrier’s bad habits. Because companies can quickly identify operators that pose the greatest risk to public safety through public government databases, courts expect shippers and brokers to act upon this readily available information. Failing to run these basic inquiries is viewed as a dereliction of duty, transforming a standard freight transaction into a massive liability because the hiring entity willfully ignored empirical evidence that the contractor was unfit for the job.
The Financial Fallout of Shared Liability
No one wants to be on the receiving end of a large personal injury award for negligent hiring; the financial impact could break a mid-sized company. Juries are not lenient to companies that put profits ahead of public safety, and may award punitive damages on top of compensatory damages. Because multiple parties can be held jointly liable, a negligent shipper might be forced to pay massive truck collision settlements alongside the at-fault motor carrier and their insurance providers. Beyond the immediate financial blow of a massive court verdict, the resulting public relations nightmare and increased insurance premiums can permanently cripple the brand’s reputation and long-term viability in the marketplace.
Conclusion
While the logistics industry focuses on maximizing speed and minimizing costs, safety must remain the top priority. Transportation companies with consistent safety infractions, like speeding and reckless driving, should not be trusted to move your shipments. If something does happen, the liability will extend beyond the trucking company and logistics provider to your business. The only way to prevent this from happening is to thoroughly vet your logistics provider.