The Supreme Court ruled unanimously on May 14, 2026, that the Federal Aviation Administration Authorization Act of 1994 does not preempt state common-law…
The Supreme Court ruled unanimously on May 14, 2026, that the Federal Aviation Administration Authorization Act of 1994 does not preempt state common-law negligence claims against freight brokers who negligently select motor carriers [1]. The decision eliminates the primary federal defense the freight brokerage industry had deployed to defeat tort suits arising from carrier-caused accidents [2]. Every licensed freight broker operating in the United States now faces potential state court liability for its carrier-vetting decisions [1].
The case, *Montgomery v. Caribe Transport II, LLC*, originated from a negligent-hiring claim against a freight broker over its selection of a motor carrier [2]. The central legal question was whether the FAAAA, which broadly preempts state laws "related to" the price, route, or service of a motor carrier, broker, or freight forwarder, extended to common-law tort claims targeting broker conduct in screening carriers [1]. Lower courts had split on that question, with some panels reading the statute's preemption clause broadly enough to bar negligence suits entirely [2]. The Supreme Court rejected that reading, holding that state tort claims of this kind do not fall within the statute's preemptive scope [1].
The ruling's practical reach is substantial. Freight brokers now face a legally enforceable standard of care grounded in state negligence doctrine, and their process for reviewing Federal Motor Carrier Safety Administration safety records, carrier insurance histories, and compliance data will be scrutinized in litigation [1]. Brokers that previously relied on the FAAAA shield as a threshold dismissal argument can no longer short-circuit those suits before discovery [2]. Industry participants without documented, systematic carrier-screening protocols are exposed to negligence claims in every jurisdiction where they arrange transportation [1]. The decision effectively converts FMCSA safety data review from a best practice into a litigation-testable legal obligation [2].
The immediate operational consequence for brokers is the need to implement and preserve auditable due-diligence records for every carrier they retain [1]. Defense counsel should expect a wave of state court filings in high-damages trucking accident cases where broker carrier selection is at issue [2]. Plaintiffs' firms with pending FAAAA preemption defeats at the appellate or district court level will move promptly to reinstate those claims [1]. Congress could respond by legislatively restoring a preemption defense, but no such effort was signaled as of the ruling date [2].
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**Meta Description:** The Supreme Court unanimously held that the FAAAA does not preempt state negligence claims against freight brokers, exposing the industry to tort liability nationwide.
**Slug:** supreme-court-freight-broker-faaaa-preemption-ruling
**Tags:** Legal News, Motion Ruling, Montgomery v. Caribe Transport II LLC, United States, Washington D.C., Preemption, Freight Broker Liability, Trucking Tort Law, U.S. Supreme Court, Caribe Transport II LLC
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**Metadata:**
– subject: Montgomery v. Caribe Transport II, LLC
– subject_type: Motion Ruling
– date: 2026-05-14
– jurisdiction: federal
– country: USA
– region: D.C.
– city: Washington
– key_people: N/A
– key_organizations: U.S. Supreme Court, Caribe Transport II LLC
– themes: Preemption, Freight Broker Liability, Trucking Tort Law
– significance: The ruling eliminates the FAAAA preemption defense that freight brokers nationwide relied upon to defeat state negligence claims, making FMCSA-based carrier vetting an enforceable legal standard of care.
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**References:**
[1] FreightWaves. (2026, May 14). *The Supreme Court just told every freight broker that they can be sued.* https://www.freightwaves.com/news/the-supreme-court-just-told-every-freight-broker-that-they-can-be-sued
[2] JDSupra / Dorsey & Whitney. (2026, May 14). *The Supreme Court Update, May 14, 2026.* https://www.jdsupra.com/legalnews/the-supreme-court-update-may-14-2026-8397030/