Fifth Circuit Reverses Twice for Penske Firms, Citing Supreme Court's Montgomery Ruling

Published Aug 7, 01:43 PM UTC

The Fifth Circuit Court of Appeals reversed two lower court decisions that had favored Penske-related companies in a lawsuit stemming from a fatal 2018 truck accident. One reversal involved broker Penske Transportation Management (PTM), which had been dismissed from the case based on the Federal Aviation Administration Authorization Act (F4A). The appellate court cited the Supreme Court's Montgomery vs. Caribe Transport II decision, which held that the F4A's safety exception applies to brokers. The second reversal concerned Penske Logistics, which the court found could be considered a statutory employer of the driver involved in the crash. The case, Crane vs. Liberty Lane, continues with both Penske entities reinstated as defendants.