A logging company has been cleared of blame in a fatal crash involving a trucking company it subcontracted. The trial focused on so-called double brokering and whether the middleman should be liable for failing to vet the trucking company properly.
A jury in an Oregon state court found R&T Logging was not negligent when it hired Wolf Creek Timber Services to haul logs for a job it was contracted to do by another company. Plaintiffs sought to put the logging company on the hook for a fatal crash that involved Wolf Creek and its intoxicated driver.
The case centered on R&T Logging’s failure to research Wolf Creek. Although attorneys represented the business relationship as a “double brokering” situation, the logging company more accurately subcontracted work to the trucking company, as it had no trucks or hauling authority to begin with.
The estate of the woman killed argued that the logging company did not ensure that Wolf Creek was a safe carrier. It claimed a quick look at the Federal Motor Carrier Safety Administration’s SAFER website would have shown several warning signs.
On the other hand, R&T Logging argued that it’s normal to hire based on trusted recommendations. It said that since it has no trucking authority, it shouldn’t be held accountable for the trucking operations it contracts out.
“We believe that the evidence will show while on its face it’s easy to talk about websites, that it’s perfectly reasonable to accept the recommendation from a trusted colleague with a great reputation,” Jeffrey Hansen, R&T Logging’s attorney, told the jury during opening statements.
In the end, the jury sided with R&T Logging. The case raised concerns about double brokering, subcontracting and unreliable motor carriers.
Subcontracting to a carrier with a ‘poor reputation’
The controversy focused on how much vetting R&T Logging needed to do when double brokering the hauling part of a logging job.
On Sept. 3, 2021, R&T Logging was hired by Starker Forests for a clear-cutting job in Oregon. Per the contract, R&T Logging was responsible for the entire clear-cutting operation, including hauling the logs to a designated receiver.
Since the logging company has no trucks, let alone any hauling authority, it contracts the transportation leg of the clear-cutting job to log trucking companies. On Sept. 16, 2021, R&T Logging Owner Matt Cook asked a log trucker he knows if he could get some truck drivers to the job site. Four days later, truckers for Wolf Creek, including Shane McVay, showed up to the job site to haul logs for R&T Logging.
At around 7:14 a.m. that day, McVay rolled over his truck with inoperable brakes while speeding and 1,300 pounds overweight. That rollover killed 25-year-old Sarah Susman. It was later discovered that McVay was intoxicated during the crash.
Two days later, the Oregon Department of Transportation suspended Wolf Creek’s license after the agency cited it for nearly 200 violations. In December 2022, McVay was convicted of first-degree manslaughter and driving under the influence. He was sentenced to 10 years in prison.
‘We did nothing’
During the trial, Tom D’Amore, the attorney for the estate of Susman, argued that R&T Logging should have known about Wolf Creek’s bad record and never should have hired the carrier.
He claimed that even a cursory look into the trucking company would show its “poor reputation in the industry.” D’Amore said R&T Logging allowed a “random, unvetted and intoxicated truck driver to transport logs.”
“There were multiple wrongdoers here, but the evidence is that R&T could have done things differently and could’ve prevented this from happening,” D’Amore said.
When asked what R&T Logging did to ensure Wolf Creek was a safe company to haul logs, Cook said, “We did nothing.”
“I had no communication with them in any way, shape or form prior to them showing up on our job site,” Cook said.
D’Amore said a quick glance at SAFER would have revealed numerous violations. In June 2021, Wolf Creek received an unsatisfactory safety rating from ODOT due to several failed inspections, failure to maintain vehicles and failure to monitor its drivers’ alcohol and substance abuse.
Wolf Creek had given up its authority at one point before the crash. The owner at the time transferred ownership to his girlfriend to get that authority back.
D’Amore essentially put double brokering on trial. He argued that if R&T Logging is not held accountable, it sends a message that vetting is optional for those engaged in double brokering or subcontracting.
“It is not an industry practice,” D’Amore said. “Good trucking companies do not run their companies like these folks do.”
Even R&T Logging’s attorney acknowledged how bad Wolf Creek was. Hansen went as far as to call McVay “an unrepentant alcoholic.”
“To be honest with you, there is really nothing good you can say about Wolf Creek, and there is nothing good you can say about Shane McVay,” Hansen told the jury.
However, Hansen argued that R&T Logging’s double-brokering practices are standard in the industry. He claimed that Wolf Creek and McVay were solely responsible for the crash.
D’Amore sought $75 million in damages, asking the jury to assign 80% blame to R&T Logging, 10% to Wolf Creek and 10% to McVay. The jury cleared the logging company of any responsibility. The plaintiffs may appeal the verdict.
Feds to address double brokering
Double brokering has been a major issue in trucking, and the U.S. DOT plans to tackle it.
In its “Pro-Trucker Package” announced in late June, the DOT said it is committed to combating unlawful brokers. That includes looking into double brokering.
“To promote fairness and stability of the industry, FMCSA is renewing its focus on combating unlawful double brokering – a practice that directly harms drivers,” a DOT spokesperson said. “That includes reviewing the entire portfolio of regulatory actions listed in the Fall 2024 Unified Agenda, including the broker transparency rulemaking proposal.”
At House and Senate hearings this year, OOIDA Executive Vice President Lewie Pugh spoke out about the problems truckers face with double brokering and other criminal activities.
“As motor carriers are increasingly victimized by freight fraud, unpaid claims, dubious charges, unpaid loads and double brokered loads, the current lack of transparency has left them little to no means to defend themselves from these schemes,” Pugh said. LL
Land Line Senior Editor Mark Schremmer contributed to this story.
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