A few weeks after an OurBus-branded bus hit a low overpass at Newark Penn Station, injuring some of the passengers onboard, a national law firm posted a story about the Aug. 13 crash on its website, looking for clients.
Although OurBus sold the bus tickets and likely set the routes and schedule, the bus was operated by a motor carrier called Liberty Coach Inc. Either or both could end up as defendants in a lawsuit. And as more bus operators partner with tech companies like OurBus, Rally, FlixBus or FanZone, questions of liability deserve attention, says one national legal expert.
“When someone buys tickets from one of these sites and is injured in a crash, their easiest case is likely going to be against the motor carrier,” said Bryant Walker Smith, assistant professor at the University of South Carolina’s School of Law and a member of the U.S. Department of Transportation’s Advisory Committee on Automation in Transportation.
In contrast, a claim against a broker could be more difficult. Because brokers generally do not maintain or operate the buses for which they sell tickets, they may not be as closely connected to the injuries that passengers suffer. Furthermore, these companies may have tried to limit their liability in their contracts with the passengers.
Bus operators are the entities registered with the Federal Motor Carrier Safety Administration and directly regulated by the federal agency. But liability is treated differently when it comes to transporting things. Under FMCSA rules, brokers who arrange transport for goods can be liable along with trucking companies if there is damage.
New rules or enforcement action likely would be triggered only by “market failure,” such as cases involving brokers using unlicensed or unregulated bus companies.
Even if a broker or tech company is found liable to injured victims, it’s not necessarily going to reduce the operator’s liability or exposure.
Depending on the indemnification language in contracts with brokers, bus operators may even be required to defend or reimburse a broker if the broker is found liable, he added. He encourages bus operators to take a close look at their contract language and insurance policies when negotiating deals with brokers or tech companies.
“Because these companies do dictate some of the terms, they might be on the hook for related injuries,” Smith said. “But that doesn’t mean that the operators are going to get off the hook.”
