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Client Alert Trevor Rubin Client Alert Trevor Rubin

Supreme Court Rules That State Tort Claims Against Freight Brokers Are Not Preempted by the FAAAA

Brokers should promptly review their carrier-selection practices, insurance coverage, and compliance programs in light of the Supreme Court's unanimous decision in Montgomery v. Caribe Transport II, LLC, No. 24–1238 (May 14, 2026). The Court held that the Federal Aviation Administration Authorization Act (“FAAAA”) does not preempt state-law negligent-hiring claims brought against transportation brokers, resolving a longstanding circuit split and significantly expanding brokers' potential exposure to tort liability.

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