Trucking 3PLs Score Legal Victory in Liability Fight
GlobalTranz is urging the Supreme Court to delay making a decision on the question of broker liability, citing the need for more time and legal rulings to come down before the justices weigh in. The company is facing an appeal from Ying Ye, whose case against GlobalTranz for hiring Global Sunrise, the carrier involved in a fatal 2017 accident, was unsuccessful in lower courts. Ye is arguing that the exclusion of the 3PL from liability conflicts with a decision from the 9th Circuit, Miller v. C.H. Robinson, which set a precedent that a 3PL can be held liable for damages if it hires a carrier involved in an accident.
While GlobalTranz is pushing for more time before the Supreme Court considers the case, the trucking and 3PL community has been eagerly awaiting a chance to see the precedent in Miller v. Robinson overturned. The conflict between the Ye case and the Miller case has raised the possibility of resolving this issue. GlobalTranz acknowledges the significance of the legal issues raised in Ye’s case but argues that there is no urgent need to address them immediately, as the question is still being debated in lower courts.
The main difference between the Miller and Ye cases lies in the interpretation of the safety exemption under the Federal Aviation Administration Authorization Act (F4A). GlobalTranz argues that the 7th Circuit correctly ruled in its favor, citing the preemption of the F4A, while the 9th Circuit reached a different conclusion in Miller. The company believes that further deliberation in the lower courts may lead to a resolution, as only the 7th and 9th Circuits have conflicting views on the issue of liability for brokers under the safety exemption.
GlobalTranz’s brief emphasizes the potential impact of finding liability for brokers on their operations, as well as the history and intent of the F4A to prevent state interference with transportation prices, routes, and services. The company believes that allowing the question to percolate further in the lower courts may lead to a clearer resolution of the conflicting views on broker liability. Ultimately, GlobalTranz argues that there will likely be more cases involving freight broker liability in the future, giving other courts the opportunity to address the question presented.