June 16, 2026

In a significant decision for the transportation industry, the U.S. Supreme Court has resolved a longstanding split among the federal courts regarding the scope of the Federal Aviation Administration Authorization Act (“FAAAA”) and the liability exposure of transportation brokers.

In Montgomery v. Caribe Transport II, LLC, the Court unanimously held that negligent hiring claims against transportation brokers fall within the FAAAA’s “safety regulatory authority” exception and therefore are not preempted by federal law. As a result, plaintiffs may pursue state-law negligent hiring claims against brokers that select motor carriers involved in accidents.

Historical Background

Congress enacted the FAAAA in 1994 to promote deregulation of the trucking industry and prevent states from imposing economic regulations related to a motor carrier’s prices, routes, or services. The statute broadly preempts state laws affecting interstate transportation but contains an important exception preserving the “safety regulatory authority of a State with respect to motor vehicles.”

For years, federal courts disagreed on whether that safety exception allowed plaintiffs injured in trucking accidents to pursue state-law negligent hiring claims against transportation brokers. The Seventh and Eleventh Circuits generally held that such claims were preempted by the FAAAA, while the Sixth and Ninth Circuits concluded that negligent hiring claims fell within the statute’s safety exception and could proceed.

The Supreme Court agreed to hear Montgomery to resolve this split and clarify the extent to which transportation brokers may rely on FAAAA preemption as a defense to negligence claims.

The Supreme Court’s Decision

The case arose from a collision in Illinois involving a commercial truck transporting property interstate and a tractor-trailer. The injured tractor-trailer driver brought negligence claims against both the motor carrier that employed the driver and the transportation broker that arranged the shipment. The plaintiff alleged that the broker negligently hired the motor carrier despite the carrier’s poor federal safety rating.

Both the district court and the Seventh Circuit agreed with the broker and dismissed the claim. The Supreme Court, however, unanimously reversed.

Writing for the Court, Justice Barrett acknowledged that FAAAA preemption is broad but concluded that negligent hiring claims are preserved by the statute’s safety exception. The Court found that a state’s authority over motor vehicle safety naturally encompasses claims involving the selection of motor carriers that will operate vehicles on public roadways. According to the Court, the negligent hiring of an unsafe motor carrier is sufficiently connected to motor vehicle safety to fall within the state’s preserved regulatory authority.

As a result, state-law negligent hiring claims against transportation brokers may proceed despite the FAAAA’s preemption provisions.

Potential Impact on the Transportation Industry

Although the case specifically addressed § 14501(c)(2)(a) of the FAAAA relating to motor carriers transporting property, the Court’s reasoning may have broader implications.

Importantly, the Supreme Court also clarified that the same “safety” exception applies to intrastate brokers and freight forwarders and brokers under § 14501(b), significantly expanding potential negligence exposure for transportation intermediaries.

The statute contains similar “safety” provisions applicable to passenger transportation, suggesting that entities involved in interstate passenger transportation may also face similar exposure to negligent hiring claims under state law.

Key Takeaways

Motor carriers and transportation brokers should be aware that FAAAA preemption may no longer serve as an affirmative defense to negligent hiring claims involving drivers engaged in intrastate and interstate transportation.

In light of this decision, brokers should consider:

• Reviewing carrier selection and vetting procedures;
• Evaluating carriers’ federal safety ratings before entering transportation agreements;
• Requesting carriers provide documentation of hiring tests and background checks for drivers;
• Researching negligent hiring statutes in states where a high volume of transportation is conducted; and
• Acquiring insurance coverage and reviewing risk management practices in anticipation of increased litigation exposure.

Transportation brokers should expect greater scrutiny of their carrier-selection decisions and take proactive steps to document the diligence performed before engaging motor carriers.

For more information regarding transportation liability, negligent hiring claims, or regulatory compliance issues, please contact Jason T. LaRocco at jlarocco@regerlaw.com or 215-495-6505.