Fifth Circuit reinstates broker liability suit against Penske Transportation Management, citing Supreme Court 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 in Texas. The first reversal reinstated broker Penske Transportation Management (PTM) as a defendant, citing the Supreme Court's Montgomery vs. Caribe Transport II ruling that the F4A safety exception applies to brokers. The second reversal reinstated Penske Logistics as a defendant, finding it could be considered a statutory employer of the driver involved. The accident occurred after a series of subcontracts: Adient hired Penske Logistics, which used affiliate broker PTM to subcontract to Liberty Lane, which then subcontracted to OK Trans, whose driver caused the crash that killed Lydon Dean Meyer.