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On Thursday, May 14, 2026, the U.S. Supreme Court, in a 9-0 opinion authored by Justice Amy Coney Barrett, held that brokers who select motor carriers to transport shippers’ goods are subject to state laws governing negligence claims. This decision will most likely result in freight brokers being named in state court lawsuits involving bodily injury or property damage arising from accidents involving commercial motor carriers.
What Was the Issue Before the Court?
At issue was whether an exception to the Federal Aviation Administration Authorization Act (“FAAAA”) preemption of state laws related to the prices, routes and services of the trucking industry extended to brokers. The Court held that it did, finding that a claim alleging one company negligently hired another to transport goods falls within the exception.
It is common in the commercial transportation industry for sellers to contract with brokers to identify and retain reliable carriers. “Brokers are the transportation industry’s matchmakers, connecting sellers of goods to the carriers who move them,” wrote Justice Barrett. Statistics show that brokers arrange approximately one-third of all freight shipped in the United States.
Background on the FAAAA
In 1994, nearly 60 years after the federal government began regulating the commercial trucking industry, Congress addressed concerns that the regulatory framework was “inhibiting competition” by enacting the FAAAA, which expressly preempts certain state regulations involving motor carriers. One year later, Congress amended the FAAAA to extend the preemption to other participants in interstate transportation, including brokers.
The statute prohibits states from enacting or enforcing a law or regulation “related to a price, route, or service of any motor carrier or broker with respect to the transportation of property.” 49 U.S.C. § 14501(c)(1).
While the FAAAA’s preemption provision is broad, the Act’s safety exception serves as a significant limitation. That exception states that the preemption provision “shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” 608 U.S. ___ (2026) (quoting 49 U.S.C. § 14501(c)(2)(A)).
Why the Decision Matters
Brokers have frequently relied on the Act’s preemption language to seek dismissal of lawsuits alleging bodily injury arising from commercial motor vehicle accidents. Not surprisingly, federal circuit courts had been divided on whether the safety exception permits negligent hiring claims against brokers.
Justice Kavanaugh, who joined and concurred in the opinion, stated: “I agree that the [1994 Act] does not preempt state court suits against brokers who negligently arrange truck transportation with an unsafe carrier.”
The Supreme Court’s opinion now resolves that split of authority.
Key Takeaway
Insurers of freight brokers should now be prepared to defend negligent hiring claims arising from commercial motor vehicle accidents. Maintaining thorough underwriting and carrier-selection files, along with developing and implementing best practices for broker vetting procedures, will be increasingly important in defending these claims.
