Texas Court Rejects Vicarious Liability Claim Against Shipper

A Texas court's recent decision in favor of Atlas Aerospace has dealt another blow to the push for vicarious liability against shippers in transportation accidents. This development comes after a $604 million verdict was handed down in the case of Lipe vs. Lupus Superior, which involved C.H. Robinson (NASDAQ: CHRW). In the latest case, the Court of Appeals for the Eighth District in El Paso upheld an earlier decision that blocked claims against Atlas Aerospace, ruling that there was no evidence to support the argument that the shipper exercised control over the trucking company hired to transport its goods.

The accident occurred in 2018 when a truck hauling Atlas's freight crashed into another vehicle in Kansas, resulting in two deaths. The plaintiffs sought to hold Atlas liable for the crash, but the court disagreed, stating that there was no evidence of vicarious liability. This decision parallels the recent case involving Home Depot and Werner (NASDAQ: WERN), where the Texas Supreme Court rejected a similar attempt to hold the shipper responsible.

C.H. Robinson has taken an aggressive stance in defending itself against the Lipe vs. Lupus Superior verdict, publishing a question-and-answer document that reiterates its position and addresses industry rumors. The company claims it did not employ the driver involved in the accident and emphasizes that it used Lupus Superior for 270 loads without incident.