Issue link: http://read.dmtmag.com/i/103886
Broker basics settlement in excess of $27 million. Further driving home the point that it is important for shippers and brokers to draw clear lines between their operations and those of the motor carrier they select by operating within the boundaries established for freight brokers dictated by federal regulations. The more you look or act like a carrier the more you will be held to a carrier's standard of liability versus that of a broker. For instance, requirements such as having the motor carrier check in under the broker name with the shipper, having the broker name on the shipping documents, controlling the time, manner and the method of delivery all factor into this distinction. Also, be prepared to spend a large chunk of money in defense at the lower level and throughout the appeals process and then hope for the best. For there is no guarantee that in the end you will win. The other strategy as a shipper or broker is to tackle the problem head on by performing due diligence and establishing acceptable criteria upon which you will select a carrier. It's not as complicated as it may sound. There are websites, such as http://ai.fmcsa.dot.gov/ SMS/, where you can do what is essentially a safety related background check for trucking companies. This website allows you to find out what you need to know about every trucking company operating on the roads today, including driver safety ratings and other key elements of their services. However, if the broker investigates a motor carrier's safety record and decides to utilize that carrier, there is no guarantee that the broker will be immune from a law suit. Again, it's a virtual certainty that the broker will be sued for two reasons. First, the attorney's typically getting a contingent fee based on a percentage of a successful outcome, so it is in their best interest to sue anyone they believe to have "deep pockets." Second, any attorney failing to sue anyone and everyone involved with the shipment or the vehicle leaves the lawyer open to an attorney's errors & omissions suit. / Owner operator/ February 2013 / / 58 OO0213_text2.indd 58 1/8/13 1:58 PM