C.H. Robinson settles one of several lawsuits

Jan. 7, 2003
Third-party logistics provider C.H. Robinson Worldwide said it has settled one of three wrongful death lawsuits filed against it in Illinois, stemming from a multi-vehicle accident in September 1999 that involved T.J. Transport, a carrier contracted by C.H. Robinson. Robinson said it settled the lawsuit for $4.25 million and expects to take an after-tax charge against its fourth quarter earnings to
Third-party logistics provider C.H. Robinson Worldwide said it has settled one of three wrongful death lawsuits filed against it in Illinois, stemming from a multi-vehicle accident in September 1999 that involved T.J. Transport, a carrier contracted by C.H. Robinson.

Robinson said it settled the lawsuit for $4.25 million and expects to take an after-tax charge against its fourth quarter earnings to cover that expense. The Minneapolis-based logistics firm said its is also planning to sue two of its insurance carriers, alleging wrongful conduct in the defense and settlement of the case and demanding reimbursement of the $4.25 million payment.

However, C.H. Robinson noted that its main insurance provider has agreed to cover the cost of any potential judgement in the remaining two cases, provided the trials do not find that direct actions of C.H. Robinson employees involved conscious disregard for the safety of others.

CFO Chad Lindbloom said that C.H. Robinson continues to maintain it was not at fault in the accident, but settled rather than "risk potentially higher jury awards."

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Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

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