Court Says Freight Brokers Aren't Always at Fault for Accidents
Big court win for freight brokers: they can't always be blamed for accidents.
The U.S. Court of Appeals for the 7th Circuit has ruled in favor of the freight brokerage industry, upholding that negligence claims against brokers are federally preempted. This aligns with the 11th Circuit's interpretation, setting a persuasive precedent for courts elsewhere. The case revolved around the Federal Aviation Administration Authorization Act (FAAAA) and its "safety exception", which the court concluded does not save a negligence claim against a broker. While a significant win for freight brokers, the scope of FAAAA preemption and application of the "safety exception" are still open for debate until definitively addressed by the Supreme Court.