U.S. Supreme Court to Resolve Circuit Split Determining Whether or Not FAAA Preempts Negligent Hiring Claims Against Brokers

by Shelby Sanford, Esq.

The August 6^th, 2025, Reminger Report, covered the 6^th Circuit ruling in Cox v. Total Quality Logistics, Inc., which held that negligent hiring claims against a freight broker fell under the “safety exception” of the Federal Aviation Administration Authorization Act (“FAAA”), and therefore, such claims are not preemptable. This decision deepened the circuit split, aligning the 6^th Circuit with the 9^th Circuit, while the 11^th Circuit and 7^th Circuit disagreed.

On October 3^rd, 2025, the United States Supreme Court agreed to address this very issue by granting a writ of certiorari in Montgomery v. Caribe Transport II, LLC, et al., out of the 7^th Circuit. The Supreme Court denied hearing this issue in 2020, 2023, and 2024, with the petitions coming from the 9^th, 7^th, and 11^th Circuits, respectively. Now, with the equal circuit split created by Cox, the Supreme Court was prompted to address the issue. Notably, Total Quality Logistics, Inc., filed their petition for a writ of certiorari on August 4^th, 2025, which remains undecided.

Similar to Cox, Mr. Montgomery was involved in a motor vehicle accident. Subsequently, he filed a case against the driver, the motor carrier, and the broker; specifically, alleging negligent hiring against the broker. In 2023, the 7^th Circuit held in Ye v. Global Tranz Enterprise, Inc., that the safety exception did not apply and state law claims against freight brokers were preempted; the petition for a writ of certiorari that followed this decision was denied by the Supreme Court.

So, when Montgomery came before the U.S. District Court for the Southern District of Illinois, the Court acted in accordance with the Ye ruling, and of course, an appeal followed. When Montgomery came before the 7^th Circuit Court of Appeals in 2024, the Court declined to reconsider their ruling in Ye made only a year prior and affirmed the District Court.

The impending Supreme Court ruling in Montgomery will resolve a hotly contested issue and issue a binding precedent on whether or not negligent hiring claims fall within the FAAA safety exception, protecting them from preemption. In the meantime, cases currently before lower courts with this same issue will likely consider seeking a stay pending the decision.

If you have any question regarding Trucking or Commercial Transportation issues or would like a copy of any of the court decisions mentioned, please contact one of Reminger’s Trucking and Commercial Transportation Practice Group lawyers.