A recent Supreme Court petition in Montgomery v. Caribe Transport II LLC et al. seeks to resolve a deepening circuit split over whether state-law negligence claims against freight brokers are preempted by the Federal Aviation Administration Authorization Act (FAAAA). While courts broadly agree that the FAAAA preempts state laws “relating to a price, route, or service of any motor carrier,” they diverge on whether the statute’s “safety exception” —which provides in relevant part that the FAAAA “shall not restrict the safety regulatory authority of a State with respect to motor vehicles”—permits claims for negligent hiring or selection against brokers.
The Sixth and Ninth Circuits say yes: such claims can proceed under the safety exception. The Seventh and Eleventh Circuits say no: such claims are preempted, reasoning that broker services are not directly connected to motor vehicles.
In Montgomery, the plaintiff sued a freight broker for negligent hiring after a serious trucking accident that resulted in his wife’s death. Both the district and Seventh Circuit courts found the claim preempted, but notably, the broker itself (C.H. Robinson) has urged Supreme Court review to clarify the law.
The divide is not merely academic. As it stands, a freight broker’s exposure to liability for negligent selection depends on geography, a patchwork regime that leaves companies guessing and plaintiffs forum-shopping. Until the Supreme Court acts, companies should presume that the safety exception does not apply, and prioritize safety diligence and thorough documentation.
Crowell will continue to monitor this growing circuit split and whether the Court grants certiorari to clarify where the FAAAA’s preemptive reach ends.