Supreme Court Rules Freight Brokers Subject to FAAAA Safety Exception
The U.S. Supreme Court unanimously ruled that the Federal Aviation Administration Authorization Act's (FAAAA) safety exception applies to freight brokers. This decision in *Montgomery v. Caribe Transport II* clarifies conflicting circuit court interpretations, potentially…
The U.S. Supreme Court has issued a unanimous ruling in the *Montgomery v. Caribe Transport II* case, confirming that the safety exception within the Federal Aviation Administration Authorization Act (FAAAA) extends to the freight brokerage industry. This decision resolves a long-standing legal ambiguity where various circuit courts had differing interpretations regarding brokers' liability under the FAAAA.
The FAAAA generally preempts state laws related to price, route, or service of motor carriers, which has historically protected freight brokers from many state-level negligence claims. However, the safety exception allows states to enforce laws related to motor vehicle safety. The Supreme Court's ruling means that state-level negligent selection claims against brokers, particularly concerning their choice of motor carriers, are not preempted by the FAAAA.