Westlaw Today Features Shapiro Article Examining U.S. Supreme Court Decision Narrowing FAAAA Preemption

Beata Shapiro (Partner-Boston, MA) authored “The Impact of the U.S. Supreme Court Decision in Montgomery v. Caribe Transport II, LLC, No. 24-1238: Supreme Court Allows State Negligent Hiring Claims Against Brokers,” appearing in the June 1, 2026, posting of Westlaw Today. The article examines the May 2026 Supreme Court decision in Montgomery v. Caribe Transport II, LLC, holding that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state law negligent hiring claims against freight brokers when those claims fall within the statute’s safety exception.
 
The case arose from a catastrophic Illinois truck accident that left the plaintiff with severe, life-altering injuries. The central question before the Court was whether the FAAAA shields brokers from liability for negligent selection of motor carriers, an issue that has divided federal appellate courts for years. In a unanimous opinion authored by Justice Barrett, the Court concluded that negligent hiring claims implicate a state’s traditional safety regulatory authority and therefore fall within the FAAAA’s safety exception. While the decision confirms that brokers may face certain state law negligence claims, the Court emphasized that the FAAAA retains meaningful preemptive force and continues to provide important protections. Justice Kavanaugh, concurring, cautioned that the ruling should not be read as imposing automatic liability on brokers, noting that traditional negligence principles and proximate cause requirements remain important safeguards. Beata observes, “The Court confirmed that broker selection practices are not insulated from state tort law where safety is at issue ‒ this decision will reshape how the industry evaluates risk and compliance going forward.” She also notes that significant questions remain regarding intrastate transportation and potential claims involving shippers, making Montgomery an important development in transportation law that narrows, but does not eliminate, the reach of FAAAA preemption.

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