The Daily

Federal Preeemption: The Cost-Effective Way For Special Interests To Lock You Out of Court

The 11th Circuit (Atlanta) just created conflict with other jurisdictions in ruling that federal law “preempts” or blows up negligence claims against brokers. Preemption is the legal rationale that courts use to block victims of torts from suing rental car companies and other large corporate interests that successfully lobby Congress for special protection.

In Aspen Amer., Landstar, the broker, hired a carrier to haul a load for its shipper customer but was alleged to have dispatched the load to a fraudster who stole the goods. The shipper’s insurance carrier brought a negligence claim against Landstar in the U.S. District Court for the Middle District of Florida. The Court held that the claim was preempted by the FAAA, which the Eleventh Circuit affirmed.

Here’s a link to the story

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