Supreme Court Faces Broker Liability Again in TQL Case

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Broker Liability in Trucking Accidents: Supreme Court Might Weigh In Again

The issue of broker liability following serious trucking accidents is poised to potentially land before the U.S. Supreme Court once more, as attorneys for Katia Gauthier seek a review. Gauthier, widow of a driver killed in a 2020 Georgia crash involving a truck, is challenging decisions from two lower federal courts. These courts sided with TQL Logistics, ruling no negligence when they hired Hard to Stop for transporting a load from Claxton Poultry Farms.

Previously, both the U.S. District Court for the Southern District of Georgia and the 11th U.S. Circuit Court of Appeals removed TQL from the case, presenting a daunting challenge for Gauthier's legal team in their appeal.

Previous Supreme Court Cases on Broker Liability

The quest for clarity on broker liability isn't new. Attempts have been made in recent years to reach the Supreme Court, but both prior petitions were denied.

In the case of Miller vs. C.H. Robinson (NASDAQ: CHRW), the brokerage was found negligent in 2020 by the 9th U.S. Circuit Court for a crash in Nevada, leaving Allen Miller, the plaintiff, a quadriplegic. Despite this, the Supreme Court declined to review the 9th Circuit's decision.

Another related case emerged involving GlobalTranz. The denial from the Supreme Court was clarified near early 2024. The critical distinction was that the 7th Circuit found GlobalTranz protected by the Federal Aviation Administration Authorization Act’s (F4A) provisions.

Circuit Court Discrepancies and Supreme Court Potential

Two circuit courts are at odds— Ninth Circuit’s ruling did not extend F4A protection in the C.H. Robinson case, while the 7th Circuit upheld it for GlobalTranz. Attorney Nataniel Saylor of Scopelitis anticipates one potential scenario where increased certiorari requests—alongside conflicting circuit decisions— might push the Supreme Court to finally address this issue.

Despite the Supreme Court's earlier lack of review, this discrepancy fuels the debate regarding broker liability. These contrasting decisions serve as compelling precedents for cases without binding circuit precedents, signaling an urgent need for the high court's guidance.

The Safety Exception: A Key Consideration

A significant factor is F4A's safety exception, relevant in the C.H. Robinson ruling where negligence was found relating to driver hiring practices impacting safety. This exception contradicts the overall preemption F4A confers over economic regulation, spotlighting the ongoing legal tension.

The 9th Circuit leaned on this safety exception when it ruled against C.H. Robinson, emphasizing states' regulatory authority should not be constrained where safety is concerned.

The trucking industry awaits whether this appellate conflict calls for Supreme Court intervention in Gauthier/TQL. Internal precedents such as Landstar Systems (NASDAQ: LSTR) further complicate the landscape, emphasizing the necessity for a definitive resolution.

The outcome of these legal battles may redefine accountability within the trucking brokerage industry, potentially influencing how state laws interact with federal mandates like F4A.

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