On May 14, 2026, the United States Supreme Court held that state law negligent-hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act (“FAAAAA”). In Montgomery v. Caribe Transport II, LLC, the Court unanimously held that such claims fall within the FAAAA’s “safety exception.”
The FAAAA preempts any state “law, regulation, or other provision having the force and effect of law” that is “related to a price, route, or service” of the trucking industry. 49 U.S.C. §14501(c)(1). However, the statute includes a “safety exception,” which preserves “the safety regulatory authority of a State with respect to motor vehicles.” 49 U.S.C. §14501(c)(2)(A).
In Montgomery, the plaintiff alleged that a freight broker negligently hired the driver and carrier that caused an accident. The district court entered judgment for the broker based on the Seventh Circuit’s decision in Ye v. GlobalTranz Enterprises, Inc., 74 F.4th 453 (7th Cir. 2023), which held that claims against brokers are federally preempted. The Montgomery Seventh Circuit panel declined to reconsider the Ye precedent. In response, plaintiff sought certiorari based on the circuit split on the applicability of the FAAAA preemption defense.
The Supreme Court unanimously reversed. Writing for the Court, Justice Barrett held that negligent hiring claims are saved by the safety exception. The “preemption question” boiled down to whether the claims pressed were “with respect to motor vehicle.” See 49 U.S.C. §14501(c)(2)(A). The Court determined that because plaintiff alleged that the broker failed to “exercise ordinary care in selecting a [motor] carrier,” the negligent hiring claim “falls within the FAAAA’s safety exception, which saves it from preemption.”
Justice Kavanaugh, wrote separately to emphasize that “the Court’s decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents.” Instead, “brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies.” Justice Kavanaugh anticipates that “the proximate-cause requirement in typical state tort law should help protect brokers from excessive liability.”
The ruling will undoubtedly embolden plaintiffs to assert negligent-hiring claims against brokers, shippers, and other upstream entities. However, plaintiffs still face an uphill battle establishing liability. Going forward, the defense of these claims will center on whether the broker acted reasonably in selecting the motor carrier, and whether the alleged negligent selection actually caused the claimed injuries.
If you would like a copy of this decision or have any other questions with respect to trucking & commercial liability, please contact one of our Trucking Liability Practice Group lawyers.
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