Shippers at Risk: Understanding Vicarious Liability in the Transport Industry
Could you imagine asking your boss for $23 million? In a landmark 2004 case, C.H. Robinson, a third-party logistics provider, contracted Dragonfly Express to transport a shipment for one of their customers. Unfortunately, the driver, who falsified logbook entries and drove at an unsafe speed, caused an accident resulting in two fatalities and a serious injury. Despite C.H. Robinson's defense that they were "not responsible for the actions of an independent contractor or its driver," the court held C.H. Robinson, the driver, and Dragonfly Express liable for over $23 million in damages. The Role of Vicarious Liability This case highlighted the doctrine of vicarious liability, which can extend responsibility beyond the carrier to other parties involved, including shippers. Under vicarious liability, if a shipper acts as a principal, they can be held liable for the conduct of the carrier or broker acting as their agent. This principle implies that ship...