65 F.4th 1261
11th Cir.2023Background
- Tessco hired Landstar Ranger, Inc. (a transportation broker) to arrange interstate shipment of expensive cargo; Landstar selected a registered carrier, L&P Transportation.
- A fraudster impersonating the registered carrier ("James") collected the shipment after Landstar failed to follow its carrier‑verification protocol; the cargo was stolen.
- Tessco’s insurer, Aspen American Insurance Co., paid Tessco’s claim and sued Landstar in Florida state court (removed/dismissal proceedings in federal court) for negligent selection of the motor carrier.
- District court dismissed Aspen’s negligence claims as expressly preempted by the Federal Aviation Administration Authorization Act (FAAAA), 49 U.S.C. § 14501(c)(1), and held the statute’s safety exception, § 14501(c)(2), inapplicable.
- On appeal the Eleventh Circuit reviewed de novo whether the FAAAA preempts broker negligence claims based on carrier selection and whether the safety exception saves those claims.
- The court affirmed: Aspen’s negligence claims are preempted as relating to a broker’s service in arranging transportation, and the safety exception does not apply because the claims are not sufficiently "with respect to motor vehicles."
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the FAAAA expressly preempt Aspen’s Florida negligence claims challenging a broker’s selection of a motor carrier? | Aspen: general common‑law negligence claims are not preempted and do not "relate to" a broker’s service within the Act. | Landstar: claims target the broker’s core service (arranging/selecting a carrier) and thus are "related to" a broker’s service under §14501(c)(1). | Held: Preempted — the negligent‑selection claim has a connection to a broker’s service arranging transportation, so it falls within §14501(c)(1). |
| Does the FAAAA safety exception (§14501(c)(2)) save Aspen’s negligence claims? | Aspen: negligence enforces a safety‑responsive standard and so is within the state’s safety regulatory authority and exempt. | Landstar: even if negligence is safety‑related, the exception applies only to laws "with respect to motor vehicles," and this claim is one step removed from motor vehicles. | Held: Exception does not apply — while the negligence standard can be safety‑related, Aspen’s claims are not "with respect to motor vehicles" (they are too indirect/attenuated). |
Key Cases Cited
- Morales v. Trans World Airlines, 504 U.S. 374 (1992) ("related to" construed broadly for preemption under the ADA)
- Rowe v. N.H. Motor Transp. Ass'n, 552 U.S. 364 (2008) (applied Morales to interpret FAAAA preemption)
- Dan's City Used Cars, Inc. v. Pelkey, 569 U.S. 251 (2013) (recognized limiting phrase "with respect to the transportation of property")
- City of Columbus v. Ours Garage & Wrecker Serv., Inc., 536 U.S. 424 (2002) (safety exception requires law to be "genuinely responsive to safety concerns")
- Miller v. C.H. Robinson Worldwide, Inc., 976 F.3d 1016 (9th Cir. 2020) (held negligent‑carrier‑selection claims tied to personal‑injury accidents can fall within the safety exception)
- Nw., Inc. v. Ginsberg, 572 U.S. 273 (2014) (common‑law claims constitute "other provision having the force and effect of law" for preemption analysis)
- CSX Transp., Inc. v. Easterwood, 507 U.S. 658 (1993) (statutory construction focuses on plain wording when assessing preemptive intent)
