Examining Recent Supreme Court Decisions Impacting Transportation

For this episode of the podcast, Grawe Group Founder & CEO Doug Grawe examines two recent U.S. Supreme Court rulings that will bring a collection of considerations into a new focus for trucking and logistics companies. Over the course of the episode, Doug offers practical insights on legal considerations as well as approaches for compliance.

Before offering observations on Montgomery vs. Caribe Transport decision by SCOTUS that addressed broker liability, Doug discussed a May 28 ruling by the Court in the Flowers Foods vs. Brock case and its implications for arbitration clauses in carrier contracts. As Doug notes in his analysis, the question before the Supreme Court was if federal law only applies to interstate work, interstate issues and not intrastate issues, specifically with deliveries that go from Point A to Point B in the same state. As you will hear, the court in a 9-0 decision unanimously said federal law applies, and Doug walks listeners through why that decision is significant for trucking and logistics companies.

While discussing the Montgomery decision and its future impact on negligent hiring claims against brokers, Doug focuses on the practical steps that both brokers and carriers can take to place themselves in the best position to move forward. For carriers, this includes proactively working to improve CSA scores, if needed. Brokers should review and refine their carrier vetting processes. Doug also notes the importance of understanding insurance policies and procedural protocols as part of the safeguards that should be in place.

One of the key points coming out of Montgomery that Doug emphasizes in this episode is that juries do not expect brokers and carriers, or defendants in any type of case, to be perfect. Juries understand mistakes happen. What juries are generally not okay with is not trying. They want to see that you tried. They want to see that you took the time and energy to consider a variety of things and make a balanced decision.