Middle District of Pennsylvania Rules FAAAA Preempts Personal Injury Claims Against Freight Broker

FAAAA PREEMPTION DECISION ALERT: MIDDLE DISTRICT OF PENNSYLVANIA RULES THAT VICARIOUS LIABILITY, NEGLIGENT HIRING/SELECTION/ENTRUSTMENT, AND JOINT VENTURE CLAIMS AGAINST A FREIGHT BROKER ARE PREEMPTED BY THE FAAAA AND NOT SAVED BY THE “SAFETY EXCEPTION”

On November 7, 2023, the United States District Court for the Middle District of Pennsylvania held that plaintiffs’ claims for vicarious liability, negligent hiring/selection/entrustment, and joint venture against a freight broker were: 1) preempted by the 1994 Federal Aviation Administration Authorization Act (“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 Lee v. Golf Transp., Inc., No. 3:21-CV-01948 (M.D. Pa. Nov. 7, 2023).

In Lee, the freight broker, Coyote Logistics, LLC (“Coyote”), hired/selected a motor carrier, Golf Transportation, Inc. (“Golf”), to transport a load from Oregon to New York. Without Coyote’s knowledge, another motor carrier picked up the load and was involved in the subject fatal accident. The estates of both decedents filed wrongful death lawsuits against numerous defendants, including Coyote, claiming it negligently hired/selected/entrusted Global Sunrise, that Coyote was vicariously liable for the truck driver’s underlying negligence, and that Coyote was in a joint venture with the motor carrier and driver.

Coyote answered the complaints, filed a motion for summary judgment, and the United States District Court for the Middle District of Pennsylvania granted Coyote summary judgment on the basis that the FAAAA preempted all of plaintiffs’ claims and that the “safety exception” did not apply.

The Middle District of Pennsylvania followed the reasoning in Ye v. GlobalTranz Enterprises, Inc., 7th Cir. No. 22-1805 (July 18, 2023) and Aspen Am. Ins. Co. v. Landstar Ranger, Inc., 11 Cir. No. 22-10740, ECF Doc. No. 33-1 (Apr. 13, 2023), and rejected the Ninth Circuit Court of Appeals’ decision in Miller v. C.H. Robinson Worldwide, Inc., 976 F.3d 1016, 1020 (9th Cir. 2020), which found that the “safety exception” applies to personal injury claims against a freight broker.

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 federal circuit courts decide this issue, and the Supreme Court of the United States will be inclined to accept a writ of certiorari.

If you have any questions, please contact us.