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. 

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Photo of Rebecca Baden Chaney Rebecca Baden Chaney

Rebecca Baden Chaney is a partner in the firm’s Washington, D.C. office and is co-chair of the firm’s Transportation Practice. Transportation, micromobility, consumer, and other product manufacturers lean on Rebecca Chaney’s keen understanding of the transportation and consumer product industries and the legal…

Rebecca Baden Chaney is a partner in the firm’s Washington, D.C. office and is co-chair of the firm’s Transportation Practice. Transportation, micromobility, consumer, and other product manufacturers lean on Rebecca Chaney’s keen understanding of the transportation and consumer product industries and the legal landscape to advance their businesses. Rebecca applies her commercial-focused product risk lens to represent product manufacturers facing litigation, commercial, and regulatory challenges.

Rebecca is an industry-recognized force in litigating complex product-related warranty, defect, indemnity and contractual commercial disputes, and consumer litigation, including in class actions and mass tort proceedings. She counsels her commercial clients on product disputes, risk mitigation, and crisis management matters. Rebecca additionally defends clients against defamation claims. Clients appreciate Rebecca’s close coordination with them, her proactive approach, and her critical and creative thinking about each stage in a litigation or matter.

Rebecca’s approach embraces product liability risk management across the life cycle of product commercialization, from pre- to post-launch to aftermarket. This includes advice on product labeling, as well as National Highway Traffic Safety Administration and Consumer Product Safety Commission regulatory compliance, recall, and enforcement issues.

Photo of Kendyl Barnholtz Kendyl Barnholtz

Kendyl Barnholtz is an associate in Crowell’s Litigation and Antitrust groups, where she supports all stages of litigation and represents clients across a variety of industries.

Before joining Crowell, Kendyl gained valuable experience externing at the U.S. Attorney’s Office for the Central District

Kendyl Barnholtz is an associate in Crowell’s Litigation and Antitrust groups, where she supports all stages of litigation and represents clients across a variety of industries.

Before joining Crowell, Kendyl gained valuable experience externing at the U.S. Attorney’s Office for the Central District of California, serving as a law clerk at the Los Angeles District Attorney’s Office, and externing for the Honorable R. Gary Klausner in the Central District of California.

While earning her J.D. from Loyola Law School, Kendyl served as the chief note and comment editor for the Loyola of Los Angeles Law Review. She received her B.A. in political science from UCLA.