Do Large Motor Carriers Avoid Liability Using Owner-Operator Trucks?

Devastating 18-wheeler accidents in Louisiana are often caused by driver errors or due to mechanical failures. Motor carriers operate under stringent rules and regulations, from driver qualification and hours-of-service to truck maintenance. These rules are enforced precisely to avoid such crashes and make our roads safer.

It is tempting, then, for large trucking companies to subcontract hauling to independent owner-operators under a leasing contract, creating a dangerous situation where victims of a crash caused by a tractor-trailer find themselves unable to receive compensation from a financially weak owner-operator.

In the past, it was indeed possible for large trucking companies to avoid regulations regarding drivers, truck specifications and maintenance by leasing the owner-operator trucks and pretending that the owner-operator was responsible for following all the rules.

Luckily, under current federal law this is not possible anymore. It doesn't matter what the leasing contract says or whether the driver is an independent contractor or an employee, the motor carrier is responsible for all accidents involving a truck that has its "placard" or name displayed on the vehicle. A placard is information affixed by the motor carrier on the leased truck, displaying the name of the motor carrier and its permit number.

Of course, when owner-operators use their own truck to haul cargo under their own authority and not under a lease contract with a motor carrier, they need to abide by the rules on their own, and are supposed to have Primary Liability Insurance to cover damages to third parties.

Most large trucks operating over long distances, however, are owned or leased by motor carriers and not by owner-operators.

At the Young Firm in New Orleans we are dedicated to the safety of our clients. If you have been involved in a tractor-trailer wreck, contact us for a free evaluation of your case.