Naman Howell Obtains Dismissal for Freight Broker Under FAAAA Preemption
Broker liability litigation has become a major problem for freight brokers across the U.S. State courts have issued wildly inconsistent rulings regarding broker liability, creating a patchwork of various standards that are nearly impossible for brokers to meet. While three U.S. Circuit Courts have considered this issue, results are split, and the U.S. Supreme Court has yet to weigh in. Further, the U.S. 5th Circuit has not yet ruled on this issue.
Naman Howell recently obtained a major ruling that will help provide clarity in these cases and hopefully dissuade increased litigation against freight brokers.
The United States District Court for the Southern District of Texas Houston Division (located in the U.S. 5th Circuit) granted a motion to dismiss in favor of a major transportation broker ("the broker") who was represented by Naman Howell member attorney Ryan Hand, with assistance from associate Rochelle Prins.
The plaintiffs claimed a motor carrier ran a stop sign and collided with the decedent's vehicle, causing catastrophic injuries that ultimately resulted in death. After settling with the motor carrier, the plaintiffs filed suit based on negligence and gross negligence against the freight broker related to hiring and entrusting the motor carrier to haul the load.
Naman Howell filed a motion to dismiss, asserting that the Federal Aviation Authorization Administration Act (FAAAA) expressly preempts plaintiffs' state law negligence claims against a licensed broker for claims related to the rates, routes, and services of the broker. The plaintiffs further alleged that the defendant acted as a "motor carrier," while the defendant contended that it acted as a broker as a matter of law. Although the broker had both motor carrier and broker licenses, the court agreed that the defendant acted as a broker as a matter of law.
For the first time in the history of the Southern District of Texas in a personal injury case, the court granted the defendant broker's motion to dismiss based on FAAAA preemption and rejected the safety exception.
Ryan Hand is a member attorney in the Houston office of Naman Howell and focuses his practice on disputes involving transportation, personal injury, commercial, employment, and business claims.
Rochelle Prins is an associate in the Houston office of Naman Howell and focuses her practice on disputes involving transportation and personal injury.
About Naman Howell Smith & Lee, PLLC
Since 1917, Naman Howell Smith & Lee has provided individuals and businesses throughout Texas with the personal attentiveness and expertise they need on their legal matters when they need it most. We pride ourselves on our heritage, vision, and exceptional results. For more information about Naman Howell, please visit namanhowell.com.
