Last week, in Montgomery v. Caribe Transport II, LLC, the Court unanimously held that state-law negligent hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act (FAAAA). To learn more, please read our Client Alert Bad Match, Big Consequences: Supreme Court Holds Freight Brokers Accountable for Negligent Carrier Selection
Federal Aviation Administration Authorization Act (FAAAA)
Supreme Court Puts the Brakes on Preemption Uncertainty
On October 3, 2025, the Supreme Court granted certiorari in Montgomery v. Caribe Transport II, LLC, 124 F.4th 1053 (7th Cir. 2025), taking on the question of whether federal law preempts state negligent selection claims against brokers. This marks a significant development in the ongoing circuit split over the reach of the Federal Aviation Administration Authorization Act (FAAAA) and its “safety exception.”
The Supreme Court’s review signals that much-needed clarity may soon be available for brokers, carriers, and litigants nationwide. As discussed in our earlier post, the Sixth and Ninth Circuits have allowed negligent selection claims under the safety exception, while the Seventh and Eleventh Circuits have found such claims preempted. The Court will now determine whether state-law negligence claims against brokers are barred by federal law.
Supreme Court Asked to Resolve Circuit Split on Freight Broker Liability
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.
Continue Reading Supreme Court Asked to Resolve Circuit Split on Freight Broker Liability