Sixth Circuit Reverses TQL Victory, Broker Liability Debate Escalates

A recent federal appellate decision has reignited the long-running legal battle over freight broker liability. The U.S. Court of Appeals for the Sixth Circuit reversed a prior victory for Total Quality Logistics (TQL), marking a significant shift in the legal landscape and potentially setting the stage for a Supreme Court showdown.

Sixth Circuit: Brokers Not Immune from State Claims

In Cox v. TQL, the Sixth Circuit ruled that the Federal Aviation Administration Authorization Act (F4A), which preempts many state laws affecting motor carriers and brokers, does not shield brokers from liability in cases tied to motor vehicle safety. The court specifically invoked the safety exception in F4A, rejecting TQL’s argument that only entities operating motor vehicles fall under that provision.

“Requiring that the regulated entity directly own or operate motor vehicles would impose an additional limitation beyond what [the safety exception] requires,” the court wrote.

This decision reversed a lower court’s finding that had favored TQL and sided with the plaintiff, Robert Cox, whose wife was killed in a crash involving a carrier TQL hired. The carrier, Golden Transit, had a well-documented history of safety violations.

A Growing Legal Divide

Before this ruling, federal appellate decisions had formed an uneven landscape:

• Pro-Broker Rulings: 7th and 11th Circuits
• Anti-Broker Rulings: 9th and now 6th Circuits

This split is expected to increase pressure on the Supreme Court to address the issue. Despite repeated petitions—Miller v. C.H. Robinson, Ye v. GlobalTranz, Gauthier v. TQL—the Court has so far declined review. With Cox v. TQL, legal experts believe the odds of a SCOTUS hearing may improve.

“The deepened circuit split increases the likelihood that the Supreme Court will take up the question,” noted logistics law firm Scopelitis.

What This Means for Brokers

The Sixth Circuit's ruling has direct implications for freight brokers operating in Kentucky, Ohio, Michigan, and Tennessee. If a crash occurs in these jurisdictions, brokers may no longer rely on federal preemption to shield themselves from state-law claims such as negligent hiring.

Attorney Bryan J. Nelson summarized the risk:

“Brokers should, if they haven’t already, implement and routinely review a Carrier Selection Policy in coordination with legal counsel, using public safety data from FMCSA’s SAFER system.”

In its ruling, the court criticized TQL for ignoring available data showing Golden Transit’s “overwhelming number” of safety violations.

Industry Outlook

This latest decision puts added pressure on brokers to take a more proactive role in vetting carriers. It also introduces further legal unpredictability across jurisdictions. While brokers in the 7th and 11th Circuits still enjoy legal protection, those in the 6th and 9th do not—creating an uneven national playing field.

Until the Supreme Court intervenes, brokers must navigate growing compliance complexity and legal exposure. The Cox v. TQL case may be the push that finally brings national clarity to this issue.

Source: FreightWaves | Bryan J. Nelson/LinkedIn