11th Circuit Rules Negligence Claim Against Broker Preempted, Creating Circuit Split

Freight brokers are often sued for negligence when there is cargo damage or personal injury involving a motor carrier hired by the broker. Personal injury claims in particular can involve damages in the tens and hundreds of millions of dollars, which represents a substantial risk for brokers. However, brokers often contend that these claims are preempted. The U.S. Court of Appeals for the Eleventh Circuit recently held in Aspen Amer. Ins. Co. v. Landstar Ranger, Inc., No. 22-10740 (11th Cir. April 13, 2022), that the Federal Aviation Administration Authorization Act (FAAA) preempts such negligence claims, reaching the opposite conclusion of the U.S. Court of Appeals for the Ninth Circuit.