Mayer recently obtained a complete summary judgment on behalf of Costco Wholesale Corporation and RXO, Inc. in a personal injury lawsuit filed in the U.S. District Court for the Southern District of Texas, Galveston Division.

The case stemmed from allegations by the plaintiff, who claimed a third-party delivery driver dropped a heavy box on his arm while delivering a home gym he purchased from Costco. He brought multiple claims, including negligence and premises liability, against both Costco and the property broker, RXO.

Mayer partner Eric Benton argued that the claims against RXO were barred by the Federal Aviation Administration Authorization Act (FAAAA), which preempts specific state law claims against property brokers. The court concurred, finding the plaintiff’s allegations against RXO as a property broker were exempted from state-law claims as preempted by FAAA.

Benton was also requested to defend Costco under an indemnity provision in its shipper/carrier agreement with RXO. As the shipper, Benton argued that Costco was not liable for alleged negligent acts of the carrier that transported the shipper’s goods or the carrier’s employees, including those installing the COSTCO product. The court agreed, dismissing all claims against Costco in a motion for summary judgment. 

Because this suit did not involve a motor vehicle accident, the “safety exception” to the FAAA was not involved, but the court’s opinion clearly creates good precedent in the Southern District of Texas to properly posture cases by removing shippers and property brokers from lawsuits for the acts and omissions of the “last mile” carrier.

This outcome reflects Mayer’s ability to navigate complex legal frameworks, defend against evolving liability theories, and secure favorable outcomes for clients at both strategic and technical levels.