The article has been updated to reflect that the court action in Miller vs. C.H. Robinson did not find the 3PL liable but did find that it was not protected by the FAAAA. The Supreme Court has denied a review of broker liability in a case involving a fatal truck accident booked by a 3PL, which is considered a win for the brokerage industry. The court rejected an appeal by Ying Ye, the widow of a man killed in a 2017 accident in Texas, against Global Sunrise. Ye won her lawsuit against Global Sunrise but failed to bring freight broker GlobalTranz into the lawsuit due to FAAAA restrictions.
Ye’s appeal to the Supreme Court was also rejected, leaving the question of broker liability unresolved. The FAAAA safety exemption allows state action for negligence in motor vehicles but is unclear regarding brokerage liability. In the Miller vs. Robinson case, the court found that the safety exception did not allow for preemption of state action against the broker, leading to concerns in the 3PL industry.
The denial of certiorari means federal courts can look to the Miller precedent, causing uncertainty in broker liability cases. However, lower courts are adopting the approach of the 7th and 11th Circuits in favor of brokers. Recent state court decisions have favored brokers like C.H. Robinson, citing the FAAAA preemption and safety exception. Opportunities for logistics mergers and acquisitions are still present despite these legal challenges.
