Introduction
On May 14, 2026, the United States Supreme Court unanimously held in Montgomery v. Caribe Transport II, LLC that a state-law negligent hiring claim against a freight broker is not preempted by the Federal Aviation Administration Authorization Act of 1994 (FAAAA) because such a claim falls within the statute’s safety exception. The decision removes the broad federal preemption defense that freight brokers have relied on for years to defeat negligent-selection claims at an early stage of litigation, and it will reshape liability exposure, underwriting practices, and commercial relationships throughout the freight transportation industry.
What is the Role of the FAAAA?
Freight brokers serve as intermediaries between shippers and motor carriers, connecting parties that need goods moved with the carriers that supply trucks and drivers. Nearly 28,000 brokers arrange transportation for about one-third of all freight shipped in the United States by more than 780,000 carriers.
