Supreme Court Clarifies Freight Broker Liability Under the FAAAA
On May 14, 2026, the United States Supreme Court unanimously held in Montgomery v. Caribe Transport II, LLC that state-law negligent-selection claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act of 1994 (“FAAAA”). The Court concluded that such claims fall within the statute’s safety exception. Montgomery v. Caribe Transp. II, LLC, 608 U.S. ___, No. 24-1238, 2026 WL ___ (May 14, 2026).
The decision resolves a long-developing circuit split, in which federal appellate courts disagreed over whether the FAAAA shields brokers from state-law negligence claims, and establishes a uniform national rule on broker liability. While it does not impose automatic liability, it significantly increases the likelihood that negligent-selection claims will survive preemption challenges and proceed to litigation.
The Court’s Decision
The case arose from a highway accident involving a motor carrier selected by freight broker C.H. Robinson. The plaintiff alleged the broker negligently hired a carrier with a deficient safety rating from the Federal Motor Carrier Safety Administration (“FMCSA”), and knew or should have known the carrier posed an unreasonable safety risk. Writing for a unanimous Court, Justice Barrett held that the FAAAA’s safety exception preserves state-law negligent-selection claims because they are claims “with respect to motor vehicles,” as they concern the trucks used in transportation.
The Court explained that although the FAAAA broadly preempts state laws “related to a price, route, or service” of brokers and motor carriers, Congress expressly preserved state “safety regulatory authority,” including common-law negligence duties. Importantly, the decision does not eliminate all FAAAA preemption protections; state laws unrelated to motor vehicle safety remain preempted.
Sixth Circuit: Cox v. TQL
The Supreme Court’s decision largely aligns with the Sixth Circuit’s earlier decision in Cox v. Total Quality Logistics, Inc., 142 F.4th 847 (6th Cir. 2025). In Cox, the plaintiff alleged that freight broker TQL negligently hired a motor carrier with a documented history of safety violations, resulting in a fatal highway accident. The Sixth Circuit held that such claims fall within the FAAAA’s safety exception and are not preempted.
Montgomery effectively adopts the same framework. Brokers operating in the Sixth Circuit should not expect a material expansion of liability beyond what Cox already established. Justice Kavanaugh’s concurrence emphasized the narrowness of Montgomery, noting that brokers who use reasonable carrier-selection procedures and contract with reputable carriers should remain well-positioned to defend against negligent-selection claims.
The Decision Does Not Alter Intrastate Brokerage Law
The decision addresses only the FAAAA’s interstate transportation provision. The Court acknowledged that the intrastate brokerage provision does not contain the same safety exception and declined to rewrite the statute. Accordingly, Montgomery should not be read as affecting purely intrastate broker operations.
Practical Considerations for Freight Brokers
Montgomery reinforces the importance of proactive carrier-vetting procedures and carefully drafted broker-carrier agreements. Plaintiffs will now focus on what brokers knew, or reasonably should have known, about a carrier’s safety history before tendering freight. While the full impact of Montgomery is still developing, interstate brokers should evaluate:
- Whether carrier insurance requirements remain current and documented;
- Whether carriers meet minimum FMCSA safety-rating standards before onboarding or dispatch;
- Whether agreements contain indemnification provisions tied to carrier safety compliance;
- Whether carriers certify that drivers maintain required qualifications, licensing, and training; and
- Whether brokers maintain documentation of ongoing carrier-review and compliance-monitoring procedures.
What’s Next?
Transportation and logistics companies should expect increased scrutiny of carrier-vetting practices, safety-review protocols, and contractual risk allocation in negligent-selection litigation nationwide.
The KMK Law Transportation & Logistics Team regularly advises freight brokers, logistics companies, and transportation stakeholders on broker-carrier agreements, risk allocation, and FMCSA compliance. Our team is available to assist clients in reviewing and updating broker-carrier agreements and carrier-vetting procedures in light of Montgomery.
John M. Milligan
513.579.6532
jmilligan@kmklaw.com
Sarah Vonderbrink Geiger
513.579.6495
sgeiger@kmklaw.com
Clarke D. Cotton
513.579.6508
ccotton@kmklaw.com
