On May 14, 2026, the United States Supreme Court issued a unanimous 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 transportation brokers. The ruling resolves a long-standing split among the federal circuits and marks a significant shift in the liability landscape for brokers operating in interstate commerce.
The FAAAA has historically been interpreted to preempt state laws that relate to the price, route, or service of any motor carrier, broker, or freight forwarder. However, the statute contains a safety exception preserving state authority to regulate motor vehicles in matters of safety. In Montgomery, the Court concluded that state-law negligent selection claims against brokers fall squarely within that safety exception. As a result, plaintiffs may now pursue such claims in state courts without facing federal preemption defenses that previously served as a meaningful barrier to recovery.
The practical implications of this decision are substantial. Transportation brokers should anticipate an increase in litigation arising from accidents involving motor carriers they have selected, particularly where plaintiffs allege that the broker failed to exercise reasonable care in vetting the carrier's safety record, insurance coverage, operating authority, or fitness to perform the contracted work. The decision effectively expands the universe of potential defendants in trucking-related personal injury and wrongful death actions.
In light of Montgomery, brokers should promptly review and, where appropriate, enhance their carrier selection and onboarding protocols. This includes documenting due diligence procedures, verifying safety ratings and federal operating authority, confirming adequate insurance coverage, and maintaining records that demonstrate a consistent and defensible vetting process. Brokers should also reassess their own insurance programs, including the scope of contingent liability and errors and omissions coverage, to ensure they reflect the broader exposure created by this ruling. Contractual indemnification provisions with motor carriers may warrant renewed attention as well.
The Montgomery decision underscores the importance of disciplined risk management practices throughout the supply chain. Brokers, shippers, and their insurers should expect that carrier selection decisions will face heightened scrutiny in future litigation.
This alert is provided for general informational purposes only and does not constitute legal advice. Clients facing specific questions regarding the impact of this decision on their operations should consult counsel for tailored guidance.