U.S. Supreme Court to Decide Key Issue Regarding Freight Broker Liability
The federal circuits courts are divided on application of the Federal Aviation Administration Authorization Act of 1994 (FAAAA). Some circuits have concluded that state law negligent hiring or supervision claims against freight brokers for personal injuries or deaths caused by commercial motor carriers are pre-empted by the FAAAA. Other circuits have concluded that the FAAAA’s safety exception applies and, therefore, the FAAAA’s pre-emption is not applicable.
The U.S. Supreme Court will resolve this conflict among the federal circuit courts in Montgomery v. Carbine Transport II, LLC, 24-1238. On October 3, 2025, the high court accepted the following “question presented” in the Montgomery case:
The common law permits a cause of action for negligent selection. For example, a person injured in a truck crash has a cause of action against someone that negligently selected the truck driver to transport property.
A federal statute expressly preempts state laws “related to a price, route, or service of any motor carrier ... or any motor private carrier, broker, or freight forwarder with respect to the transportation of property.” 49 U.S.C. § 14501(c)(1). The statute has a safety exception, providing that the statute “shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” Id. § 14501(c)(2)(A).
The question presented is:
Does § 14501(c) preempt a state common-law claim against a broker for negligently selecting a motor carrier or driver?
Therefore, the Supreme Court will resolve the conflict and provide much needed clarity to litigants regarding the application of the FAAAA.
It is likely that we will have a ruling within six months to a year.
For further background, see Vincent's article "Sixth Circuit Issues Key Ruling on Freight Broker Liability in Trucking Industry," published July 14, 2025.
Legal Update for Trucking & Transportation Liability – October 9, 2025, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2025 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.