Trucking "Nuclear Verdicts" Expose Freight Brokers, Vetting Platforms to Direct Liability

Freight brokers and the third-party carriers-vetting platforms they rely on face expanding liability exposure following the Montgomery and Lopez Superior decisions, which have eroded the preemption shield once provided by the Federal Aviation Administration Authorization Act, industry attorneys said. A Lopez Superior jury returned a $604 million verdict against a carrier that held a satisfactory FMCSA safety rating at the time of the accident, underscoring that compliance scores alone do not shield brokers from litigation, said Greg Reed, a partner at Hanson Bridgett. Reed noted that there is currently no federal or state statute governing business-to-business data broker relationships, unlike consumer protections under the Fair Credit Reporting Act. He added that a mid-sized broker's annual contract with a vetting platform typically runs $40,000 to $100,000, far too small to underwrite a single nuclear verdict. Drew Singleton Wilder, CEO of Vicarious Liability Risk Management, warned that platforms such as Highway and RMIS warrant the same due diligence as carriers themselves. Both panelists advised brokers to consult insurers on whether existing policies cover third-party data or AI-related errors.