By Gallagher Sharp LLPOn August 9, 2024, the Superior Court of California, Fresno County, rejected the Ninth Circuit Court of Appeals’ decision in Miller v. C.H. Robinson Worldwide, Inc., 976 F.3d 1016, 1020 (9th Cir. 2020) and held that Plaintiffs’ claims for negligent hiring, retention, entrustment, supervision, and training against a freight broker were: 1) preempted by the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”) found in 49 U.S.C. § 14501(c)(1) , and 2) not saved by the “safety exception” found in 49 U.S.C. § 14501(c)(2)(A). See Payne v. Platinum Roadlines, Inc., Case No. 21CECG01118, (Cal. Sup. Ct., Aug. 9, 2024).
In Payne, the freight broker, Jear Logistics, LLC (“Jear Logistics”), hired/selected a motor carrier, Gurgot Transportation Corp. (“Gurjot”), to transport a load. The plaintiffs filed a lawsuit against numerous defendants, including Jear Logistics, claiming it negligently hired, retained, supervised, trained, and entrusted the vehicle to Gurjot. Jear Logistics moved for summary judgment on the plaintiffs’ negligence claims, arguing the claims were preempted by the FAAAA and not saved by the “safety exception.”
The California superior court surprisingly rejected the holding in Miller and instead granted Jear Logistics summary judgment. The court held that that the FAAAA preempted the plaintiffs’ negligence claims and that the claims did not fall within the “safety exception. The court primarily relied upon Ye v. GlobalTranz Enterprises, Inc., 74 F.4th 453 (7th Cir. 2023) and concluded “Ye to be the better reasoned opinion, and adopts Ye’s analysis and conclusion on the issue.”
We continue to recommend that freight brokers assert the FAAAA preemption defense early, file dispositive motions, and consider filing appeals where appropriate so that other state and federal appellate courts decide this issue, and the Supreme Court of the United States may be inclined to accept a writ of certiorari.
Questions? Contact Rob Boroff.