B. Liability
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Elena Vance, J.D.
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11 min read
Freight Broker Liability: Holding Logistics Intermediaries Liable for Negligent Selection
Freight brokers frequently hire fly-by-night motor carriers with terrible safety ratings. Learn how Texas courts interpret negligent broker selection claims following landmark Fifth Circuit decisions.
Key Legal Takeaways
- Brokers have a legal duty to verify carrier safety ratings and active operating authority prior to dispatch.
- Federal FAAAA preemption defenses can be overcome through safety exception jurisprudence.
- Broker liability policies provide crucial excess insurance coverage when carrier limits are exhausted.
Negligent Carrier Selection Claims
Under Texas common law, an entity that hires an independent contractor has a duty to exercise reasonable care in selection. Brokers that ignore FMCSA conditional safety ratings or high BASIC alert scores can be sued directly for negligent hiring.