On May 14, 2026, the United States Supreme Court issued a unanimous 9-0 decision in Montgomery v. Caribe Transport II, LLC, holding that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state-law negligent selection claims brought against freight brokers. The ruling marks a significant turning point for the transportation and logistics industry, resolving a longstanding circuit split that had produced inconsistent outcomes for brokers facing tort claims arising out of motor carrier conduct.
At the heart of the decision is the FAAAA's safety exception, which preserves state authority over matters relating to motor vehicle safety. The Court determined that negligent broker selection claims fall squarely within that exception, reasoning that the duty to exercise reasonable care in selecting a motor carrier is meaningfully connected to highway safety. By placing such claims outside the scope of FAAAA preemption, the Court has cleared a path for plaintiffs to pursue state common-law theories against brokers whose carrier selection decisions are alleged to have contributed to accidents or injuries.
The practical implications for freight brokers are substantial. Brokers nationwide now face a broader landscape of potential tort exposure, and claims that may previously have been dismissed at the preemption stage are likely to proceed on the merits. This shift is expected to influence litigation strategy, settlement dynamics, and the overall risk profile of brokerage operations, particularly for companies operating at scale or across multiple jurisdictions.
In response to Montgomery, brokers should promptly reassess their carrier vetting and onboarding procedures, including the documentation of safety records, authority status, insurance verification, and ongoing performance monitoring. Contractual protections with motor carriers, including indemnification and insurance requirements, warrant careful review and, where appropriate, strengthening. Brokers should also evaluate the adequacy of their own liability coverage in light of the expanded exposure created by the decision.
Internal training, written policies, and recordkeeping practices should be updated to reflect the heightened standard of care that courts are now likely to apply. Documenting a defensible, consistent selection process will be essential to mitigating litigation risk going forward.
This alert is intended for general informational purposes only and does not constitute legal advice. Clients facing specific questions about their broker operations or potential exposure should seek tailored counsel.