Texas District Court Holds that FAAAA Preempts Negligent Hiring/Brokering/Selection Claims against Freight Brokers and are Not Saved by the “Safety Exception”

On May 21, 2024, the United States District Court for the Eastern District of Texas held that Plaintiffs’ claims for negligent brokering, selection, and monitoring of a motor carrier (1) was preempted by the 1994 Federal Aviation Administration Authorization Act (FAAAA), 49 U.S.C. §§ 14501, et seq., and (2) was not saved from preemption by the “safety exception” clause of § 14501(c)(2)(A). See, Ashley Hamby, et al. v. James Wilson, et al., No. 6:23-CV-249-JDK, 2024 WL 2303850 (E.D. Tex. May 21, 2024).

In Hamby, Plaintiffs filed suit against multiple defendants stemming from a motor vehicle accident resulting in the deaths of two occupants in a passenger vehicle. Plaintiffs alleged J.B. Hunt Transport, Inc. (“J.B. Hunt”) was involved in the accident either as the motor carrier retained to transport the load, or as the broker of the load.

The Eastern District of Texas granted J.B. Hunt’s Motion to Dismiss, finding Plaintiffs failed to plead sufficient facts demonstrating that J.B. Hunt was the alleged motor carrier, and that the FAAAA preempts Plaintiffs’ negligent hiring/selection/brokering claims against J.B. Hunt as a freight broker and that the “safety exception” does not apply.

Because the Fifth Circuit has not yet addressed FAAAA preemption of state law tort claims, the court relied on the circuit court decisions in Ye v. GlobalTranz Enters., Inc., 74 F.4th 453, 464 (7th Cir. 2023) and Aspen Am. Ins. Co. v. Landstar Ranger, Inc., 65 F.4th 1261, 1272 (11th Cir. 2023). See also, Gillum v. High Standard, LLC, 2020 WL 444371, at *5-6, 7 (W.D. Tex. Jan. 27, 2020). The court held that a common-law rule has the “force and effect of law”, and negligent brokering claims are “fundamentally ‘related to’” the broker’s service of selecting a competent motor carrier. The court also held that the FAAAA’s “safety exception” did not save negligent hiring/brokering claims because they are not directly related to motor vehicle safety.

As more state and federal courts adhere to the trend of finding FAAAA preemption in broker liability cases, we continue to recommend that freight brokers assert the FAAAA preemption defense early in litigation, and they should consider appealing decisions where appropriate so other appellate courts may decide the issue. This, in turn, may incline the Supreme Court of the United States to accept a writ of certiorari.