In my state, Massachusetts, the cities and towns are responsible for the roads and safe passage on them. Motorists can file claims if their vehicle sustains suspension damage or tire destruction even if they see the pothole. Although I don't know this for a fact, I presume the jurisdiction can also be held liable for personal injury if the vehicle leaves the road due to poor maintenance.
Their only "out" is the posting of signs or provable traffic violations such as speeding, DUI, or suspension of license. "Pass at your own risk" signs are seen frequently. You need to get a few of those or close the road with barriers. "Private road" signs are also required.
Your road looked like a road by virtue of the maintenance performed last summer and paid for by the next higher level of government. Some of those funds came from the considerable fuel tax paid by Fedex. As a representative of the town, the right thing to do was to pull him out and stop puffing your chest. If you want to bill the town, that is your business.
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