Texas Court Tosses Negligence Claims Against Broker, Citing FAAAA
The dispute stems from the alleged loss of a 2025 Cadillac Escalade ESV during interstate transport. Amherst Specialty Insurance Company, as subrogee of Happy Automotive LLC d/b/a Kia of Covington, sued to recover at least $134,000 it paid or will pay for the loss. Amherst's original complaint brought a Carmack Amendment claim and a conversion claim against motor carrier defendants Dracma LLC and Valdez Transportation LLC, plus negligence claims—negligent entrustment, negligent hiring, training and supervision—against broker JCT Automotive LLC and Curv Logistics Group Inc.
JCT Automotive moved to dismiss the negligence claims, arguing they are expressly preempted under 49 U.S.C. § 14501, the Federal Aviation Administration Authorization Act. Rather than responding to the motion, Amherst amended its complaint, dropping the negligence and conversion claims and adding a breach-of-contract claim against JCT. Judge Lee H. Rosenthal held that under Fifth Circuit precedent, JCT did not need to refile its motion against the amended pleading. Citing a split among circuits on the Act's safety exception, the court found no basis to depart from rulings that such broker-negligence claims are preempted, and dismissed them with prejudice.
What's next
- Amherst's breach-of-contract claim against JCT Automotive proceeds.
- Amherst's Carmack Amendment claims against carriers Dracma and Valdez remain in the case.
All sources
- Opinion: Amherst Specialty Insurance Company v. Dracma LLC et al — Federal court opinion (U.S. District Court Southern District of Texas), 2026-11-02
