While the U.S. Supreme Court hears a case that could settle the score on broker liability at the federal level, the situation at the state level in Florida is just as messy.
At the center of the controversy is whether a broker can be found negligent in hiring an unsafe motor carrier involved in a crash. A federal circuit court split has brokers on the hook in some parts of the country but not in others. After punting on the issue multiple times, the Supreme Court will finally rule on the issue.
All of these cases rely on the Federal Aviation Administration Authorization Act, called the F4A. The statute preempts any state law or regulation “related to a price, route or service” of a motor carrier or broker. However, a safety exception does not allow the preemption to “restrict the safety regulatory authority of a state with respect to motor vehicles.”
Every federal circuit court of appeals agrees that broker liability cases are preempted by F4A. But some have ruled that the safety exception applies, while others have not.
Although these broker liability cases often end up in federal court, some stay in state court. In Florida, state courts are also wrestling with whether F4A exempts brokers from liability. Coyote Logistics has found itself in the middle of that battle and has taken the issue to the top.
The broker is being sued for negligent hiring after a motor carrier it hired was involved in a fatal crash. According to the lawsuit, double-brokering was involved. Everyone involved in the lawsuit, including the shipper, the original motor carrier and the trucking company that ultimately transported the load, settled. Everyone except for Coyote Logistics.
Coyote Logistics scored an early victory. A county trial court ruled that F4A overrides broker liability claims. However, Florida’s Second District Court of Appeals reversed that ruling, finding the safety exception comes into play.
What makes this state broker liability case unique is the fact that it broke with the federal circuit that covers Florida. State courts typically give special weight to the circuit that covers it when answering unsettled federal questions, such as broker liability.
At the federal level, the Ninth and Sixth Circuit courts have invoked the safety exception. The Seventh and 11th Circuit courts allow F4A to preempt broker liability claims. Florida is in the jurisdiction of the 11th Circuit.
Undeterred, Coyote Logistics is asking the Florida Supreme Court to have the final say.
Essentially, the state high court would be ruling on the same broker liability question that the U.S. Supreme Court is currently hearing.
That may seem unnecessary, but Coyote Logistics argues that the Second District’s reversal has caused a problem within the state that needs to be rectified.
“As the State’s highest court, this Court should determine this important issue on a statewide basis, especially because the Second District has created a situation where the current rule of law in Florida state courts is different from the rule of law in Florida’s federal courts,” Coyote Logistics explains in its brief.
In the event the U.S. Supreme Court reaches a decision first, Florida’s Supreme Court would simply adopt that ruling. Plaintiffs still need to file their counterargument before the state Supreme Court decides whether to take on the case. LL
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