Weiss Law Offices, P.C. Legal Blog

The Appellate Court held that Alliance was not vicariously liable for the driver’s negligence because neither the driver nor Dakota acted as agent for Alliance Shippers. The Court found the following were of great importance in reaching its decision:

1. Alliance did not pay Dakota’s drivers and withhold taxes from drivers’ pay.
2. Dakota hired, trained and fired its drivers and paid them and withheld taxes from their pay.
3. Alliance did not dispatch or speak to drivers or control their routes.
4. Alliance did not hire, train, or fire drivers.
5. Nor did Alliance furnish the drivers with tools, tractors, trailers equipment, nor did used by the drivers.
6. Alliance and Dakota adhered to the terms of their agreement, which provided that Dakota had full control over its personnel and would perform services under the agreement as an “independent contractor”.
7. The Court found that Alliance and Dakota did not have an exclusive working relationship. Alliance was free to engage the services of other motor carriers and Dakota was likewise free to transport cargo for other brokers, and Dakota was not Alliance’s primary carrier. While this is not an exhaustive examination of the Court’s reasoning, it behooves Brokers to be very careful of what they agree to with carriers in order to help avoid a Court ruling that the carrier and driver are acting as agents of the broker.