Fifth Circuit reinstates liability claims against Penske Logistics, Penske Transportation Management in fatal 2018 crash

Published Aug 10, 06:01 PM UTC

The Fifth Circuit Court of Appeals has reinstated liability claims against two Penske entities—Penske Logistics and Penske Transportation Management—in connection with a fatal 2018 jackknife crash in Texas. The ruling eliminates the assumption that tendering a load down a multi-party chain extinguishes legal exposure. The load originated from an automotive seat manufacturer and passed through four parties before the crash, which killed a motorist. The court cited the Supreme Court's Charas v. Trans Air precedent to remove the FAAAA safety-exception shield for brokers. It also reversed a summary judgment that had protected Penske Logistics from vicarious liability. The ruling is expected to prompt re-litigation in other brokerage cases where defendants had previously won dismissal. Separately, a Texas ruling this week rejected shipper liability claims against Atlas Freight, marking the second such defeat for plaintiffs in the state.