In a wrongful death case in which the families of three accident victims were awarded $18 million, Humphrey, Farrington & McClain revealed how trucking companies use corporate shells and subsidiaries to limit their liability for harmful actions. Through extensive discovery and determined investigative work, our attorneys found the company that was ultimately responsible for a tragic trucking accident and convinced a jury to hold it accountable.
The Trucking Accident on I-70
On June 1, 2006, a mother, grandmother, aunt and niece were traveling on Interstate 70 near Columbia, Missouri, to a fiftieth-wedding-anniversary celebration in Illinois. Traffic had congested because of an earlier auto accident, and the women were stopped in a mass of cars.
According to the Missouri State Highway Patrol, they were on a straight stretch of road with good visibility. There were posted warning signs and a Department of Transportation (DOT) flag man warning drivers of the congestion ahead.
Nonetheless, a 70,000-pound tractor-trailer failed to slow down and slammed into the back of the women's car. The truck scattered cars, broke through safety cables on the median and jackknifed on the opposite side of the highway after crossing all lanes of traffic. The truck driver had fallen asleep at the wheel, and the four women lost their lives.
Recovery through Piercing the Corporate Veil Legal Theory
The truck driver was charged with four counts of second-degree involuntary manslaughter, and the devastated families of the three of the victims pursued a wrongful death claim. However, early information revealed there was little insurance money available to compensate for the loss of the women.
In addition, it was difficult to determine what trucking company was responsible for ensuring that the truck driver got enough sleep between driving segments. The DOT license number traced to Pro Logistics Group, but the owner of the truck was GLS Leasco and the truck's vehicle registration was held by a company called Logistics Services. Attorneys eventually discovered that all of the involved companies listed their headquarters at the same address in Michigan.
Humphrey, Farrington & McClain's attorneys revealed that these and several other companies were all owned by a single holding company: Centra, Inc. Centra owned approximately 50 subsidiary companies in an effort to separate the different operations of their trucking company. By doing so, Centra sought to limit their liability to the assets and insurance of the individual subsidiaries instead of the larger, richer parent corporation.
Our attorneys were determined to pierce the corporate veil that was intended to shield the parent company from liability. We argued that the shell game was the reason the accident happened, because one subsidiary did not know what the others were doing, and no one was monitoring the safety of the truck drivers.
In this case, the truck driver had a history of health issues and had been rejected for employment by one subsidiary before getting a job with another. During the trial, our attorneys argued that Centra, the corporate parent, failed to properly screen its drivers and ensure they received sufficient rest.
After deliberating for six hours, the jurors agreed and found Centra and three subsidiaries liable for negligence, awarding $15 million in compensatory damages. While the jurors were deliberating over potential punitive damages, the companies agreed to settle the case for $18 million.
This case illustrates how the trucking industry operates so they can claim the assets of an entire enterprise are not at risk when they cause fatalities. If you or a loved one has been injured or killed in a trucking accident, contact an experienced personal injury attorney who can hold the responsible party accountable for its actions.
