The Dallas County Court on Friday dealt mega-broker C.H. Robinson a mega-defeat by confirming the $604 million nuclear verdict stemming from a March 2021 multi-fatal crash in Mississippi.
C.H. Robinson vowed to appeal the decision, but for now it looks like the penalty has increased another $107 million.
The case, Lipe v. Lupus Superior, served as a watershed in the shadow of another massive decision, Montgomery v. Caribe, wherein a federal court made it clear brokers could be held liable for crashes caused by the carriers they hire.
Legally, shockwaves all around trucking are still clearing.
C.H. Robinson has since changed its carrier vetting strategy, as have many big brokers.
The broker vowed to appeal the verdict, which placed 45% of the blame on the driver, 32% on the carrier, and 23% on the broker.
Yet the court found C.H. Robinson could be held vicariously liable for the driver's actions, who was deemd a "borrowed employee" and "operating the vehicle in the furtherance of mission for the benefit of C.H. Robinson and subject to control by C.H. Robinson," according to the court.
As such, C.H. Robinson could be held liable for nearly all of the damages.
Not only would C.H. Robinson have to pay, but much of the $604 million judgement amount will continue to rack up interest at a rate of 6.75%. Already since March 2023, when the court considers interest to begin applying, that's another $107 million, bringing the total to roughly $711 million.
The broker's stock sank to its lowest level in the calendar year on the news.
C.H. Robinson said it will still fight the verdict, and that the case just shows how trucking regulations need to standardize across the country.
“We strongly disagree with the judgment in Lipe v. Lupus Superior and the misinformation presented at trial, and we remain confident in our appeal," said Dorothy Capers, Chief Legal Officer at C.H. Robinson, in a statement. "Nothing about our rejection of the judgment diminishes the profound loss suffered by the families in this case. But C.H. Robinson did not cause or contribute to the accident, and accountability must be grounded in the facts and the law."
Capers pointed out that the carrier "had safely delivered nearly 270 loads for our customers and held a Satisfactory FMCSA safety rating both when we selected it and after a federal review of this accident."
That Satisfactory rating puts the carrier in rare company, with only around five percent of trucking companies actually rated by FMCSA. C.H. Robinson and the Transportation Intermediaries Association have called on FMCSA to produce a list of high-risk carriers precisely to establish safety standards, but to no avail.
[Related: Brokers want FMCSA to publish list of 'high risk' motor carriers]
"The extreme nature of this judgment underscores why a clear national standard for what constitutes a safe carrier is needed now," capers continued. "America's freight network should not be governed by safety standards determined after the fact, state by state and courtroom by courtroom."
C.H. Robinson's statement on the judgement ended with a warning to small trucking companies.
"This legal landscape will continue to push small trucking companies out of the market, increase supply chain costs and drive up prices for everyday Americans," wrote Capers. "We urge Congress and federal regulators to create a national standard that enhances highway safety, creates consistent accountability and supports the uninterrupted flow of goods across the United States.”
[Related: TQL, C.H. Robinson accused of federal racketeering with illegal carrier network]
