New lawsuit approach: accusing C.H. Robinson, TQL of RICO violations

The lawsuit was brought by six carriers: Stevens Trucking, Western Flyer Express, D&M Carriers d/b/a Freymiller Trucking, IWX Motor Freight, Christenson Transportation Inc and E.O.S. Inc.

Super Ego is a player in the suit

But one of the key players in the lawsuit not named as a defendant is Super Ego Trucking. The lawsuit refers several times to Illegal Carriers, with the capitalization put there by the plaintiffs’ attorneys. Super Ego is mentioned as an example of “one of the Illegal Carrier networks at issue here.”

The lawsuit notes that C.H. Robinson had dubbed Super Ego one of its “carriers of the year,” specifically for carriers with more than 1,000 trucks. That designation was handed down approximately a year ago.

Since then, Super Ego has been the subject of a highly critical report on 60 Minutes, and is the defendant in a lawsuit over its practices.

Some aspects of the lawsuit get right to an issue that brokers, especially C.H. Robinson, have been particularly concerned about: being classified as a carrier. 

The decision in Montgomery vs. Caribe Transport II did open the door to brokers being able to be held negligent or liable on the same basis as carriers. 

But the Stevens et. al. vs. C.H. Robinson/TQL lawsuit takes that a step further.

Broker said to be a carrier

“Despite operating as a motor carrier as defined by (federal code)–including use of their own trailers, dispatch of drivers, and assumption of care, custody and control of freight–TQL and C.H. Robinson rely on their purposes status as a ‘broker’ (lawsuit’s quote marks) to knowingly avoid registering as motor carriers with the Department of Transportation, which in turn allows them to evade regulatory obligations requiring the reporting of safety violations and crashes involving the Illegal Carriers they use to haul loads for their customers,” the lawsuit says.

C.H. Robinson already is fighting an action in a Texas court that involves not only a more than $600 million verdict in a case involving a fatal wreck, but also raises the question over whether a broker can be found to be a carrier. The jury in that case did make that finding against C.H. Robinson. 

The lawsuit spells out specific lost business by the carrier plaintiffs in what could be seen as an attempt to establish standing in the courts.

For example, it says that EOS, Western Flyer, IWX and Chestenson “have been priced out” of the business moving freight to and from Graphic Packaging International’s mill in Texarkana, Texas because of “the conduct alleged in this complaint.”

The “Illegal Carriers” are also accused of engaging in behavior that has come to be known as acting as “chameleon carriers.” 

“A ‘chameleon carrier’ is a fraudulent trucking company that operates by shutting down a previous entity with a poor safety record and then reopening the same operation under a new name and DOT number to obtain a clean slate with the Department of Transportation,” the lawsuit says.

Former employees check in

The lawsuit has a series of quotes that it says are from former employees of Super Ego, though their names are not revealed. Many of them are quoted as saying they “hauled loads for C.H. Robinson.”

But they also dealt with Super Ego. The comments by one of the anonymous drivers sums up the thrust of the 60 Minutes report. 

“They all switch DOT numbers to evade enforcement,” the unidentified driver is quoted as saying. “And they all use addresses in multiple states to disguise the fact that they are all controlled from the same Chicago-area network. The only variation is the name on the door.”

Other charges against Super Ego mentioned in the lawsuit–even though it is not a defendant– include that drivers were regularly pushed to violate Hours of Service rules, and entreaties to join as part of a lease purchase plan that could see a driver end up with a truck at the end of it were mostly fraudulent.

C.H. Robinson had not provided a statement by publication time. An email sent to TQL’s press relations email also had not been responded to in time for publication.

In a prepared statement issued to FreightWaves, Trey Duck, a partner in the Austin law firm of Nix Patterson that is one of the firms involved in the suit, said “TQL and CH Robinson have lined their corporate pockets by cutting corners and selling the safety of American roads to the lowest bidder.”

“Although they are supposed to be gatekeepers ensuring carriers are safe and compliant, these defendants have solicited and enabled foreign-run carriers to put unqualified truck drivers on our roads, knowingly profited from forced labor and peonage, and pushed hard-working American trucking companies out of business,” according to Duck’s statement. “We are very much looking forward to getting into the discovery process and proving our claims in court.”

More articles by John Kingston

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