The Supreme Court ruled 9-0 that the FAAAA does not preempt state negligent-hiring claims against freight brokers, opening the industry to multistate tort liability.
A unanimous Supreme Court ruled May 14 that the Federal Aviation Administration Authorization Act's preemption clause does not shield freight brokers from state tort claims alleging they negligently hired an unsafe motor carrier [1]. The decision in *Montgomery v. Caribe Transport II, LLC* resolves a circuit split over whether the FAAAA, which bars states from enacting laws "related to" the "price, route, or service" of freight brokers, forecloses negligent-hiring suits brought under state common law [2]. Justice Amy Coney Barrett authored the opinion for all nine justices [1].
The case arose from a collision involving a carrier retained by a freight broker and reached the Court after lower courts divided on how to apply the FAAAA's preemption clause to broker-facing tort claims [2]. *Montgomery v. Caribe Transport II* was consolidated with related questions about the scope of the statute's "motor vehicle safety" exception, a carve-out that preserves state authority over safety regulations notwithstanding the general preemption provision [1]. The Court heard argument earlier this term and issued the opinion alongside a second unanimous ruling on the same decision day [2].
Barrett's opinion holds that state negligent-hiring claims fall within the motor-vehicle-safety exception because they enforce safety standards rather than regulate prices, routes, or services in the economic sense Congress targeted when it passed the FAAAA [1]. The ruling means plaintiffs may pursue brokers in state court under the tort law of whatever jurisdiction the harm occurred in, without the case being dismissed at the threshold on preemption grounds [1]. The decision exposes freight brokers, third-party logistics providers, and e-commerce platforms that coordinate shipments, including companies such as C.H. Robinson Worldwide and Amazon, to liability across a patchwork of state negligent-hiring standards [2].
The practical consequences are substantial. Brokers can no longer invoke FAAAA preemption as a categorical defense to negligent-hiring suits, forcing the industry to evaluate carrier vetting practices under the tort law of every state where their networks operate [1]. Litigation that was previously dismissed or stayed on preemption grounds may now proceed, and plaintiffs' counsel are expected to refile or revive claims that stalled in district courts pending this ruling [2]. Congress retains authority to revisit the statutory exception, but absent legislative action, brokers face immediate exposure to discovery, damages, and the prospect of inconsistent verdicts across jurisdictions [1].