On May 14, 2026, the U.S. Supreme Court issued a unanimous decision in Montgomery v. Caribe Transport II, LLC, No. 24-1238, holding that negligent-hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act (FAAAA). The Court concluded that such claims fall within the FAAAA’s safety exception, which preserves a state’s authority to regulate safety with respect to motor vehicles.
The decision resolves a longstanding split among federal courts and significantly expands potential liability for freight brokers and transportation brokers. Going forward, brokers may face increased exposure to state-law negligence claims arising from their carrier-selection decisions.
FAAAA Preemption and the Freight Broker Safety Exception
Freight brokers play a critical role in the U.S. supply chain, arranging freight shipments between shippers and motor carriers. Congress enacted the FAAAA in 1994 to deregulate certain economic aspects of the trucking… Read the complete article here...
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