Sixth Circuit Issues Key Ruling on Freight Broker Liability in Trucking Industry

The United States Court of Appeals for the Sixth Circuit handed down a significant ruling for the trucking industry on July 8, 2025. The Court’s ruling in Cox v. Total Quality Logistics, Inc., No. 24-3599 will impact how claims against freight brokers are assessed in the Sixth Circuit, which constitutes Kentucky, Ohio, Michigan and Tennessee.

Many district courts in the Sixth Circuit have held that common law negligent hiring or supervision claims against freight brokers for personal injuries or deaths caused by commercial motor carriers were preempted by the 1994 Federal Aviation Administration Authorization Act (FAAAA). The FAAAA preempts state law claims that relate to the service of any broker with respect to the transportation of property. Those same district courts have also rejected the application of the FAAAA’s safety exception, which provides that state law claims are not preempted if they apply to the "safety regulatory authority of a State with respect to motor vehicles.”

In the Cox decision, the Sixth Circuit found that the district courts have been wrong about the safety exception and reversed the decision of the lower court, holding that “…where a negligent hiring claim against a broker substantively concerns motor vehicles and motor vehicle safety, that claim is within ‘the safety regulatory authority of a State with respect to motor vehicles.’” Therefore, in the Sixth Circuit, freight brokers will no longer have the protection of the FAAAA’s preemption provision and state law claims will be allowed to proceed against them.

The Cox decision will not be the final word on this issue. There is a conflict among the federal circuits as to the application of the safety exception, and it is very likely that the issue will be eventually decided by the U.S. Supreme Court.   

^{Legal Update for Trucking & Transportation Liability – July 14,  2025, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2025 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.}