Supreme Court Ruling Mandates Ordinary Care in Carrier Selection for Brokers
A recent Supreme Court decision now requires 28,000 freight brokers to exercise ordinary care when selecting carriers. This ruling emphasizes the critical need for robust carrier vetting processes, prompting brokers, shippers, and 3PLs to evaluate their technological solutions…
The Supreme Court recently issued a ruling that obligates approximately 28,000 freight brokers to implement a duty of ordinary care in their carrier selection procedures. This landmark decision, made on May 14, signifies a shift in legal responsibility within the freight industry, moving beyond the previous understanding of carrier vetting as merely a best practice to a legal requirement.
This ruling underscores the necessity for all entities involved in freight arrangement—including brokers, shippers, and third-party logistics (3PL) providers—to not only have a carrier vetting process but also to ensure that the technology supporting this process is legally defensible. The implication is that a jury must be convinced of the diligence and effectiveness of the vetting system in place.