For the Defense

Welcome to June! We are quickly approaching the second half of 2026. The days are getting longer, Texas is heating up, summer activities are in full swing (I think my children are competing for most camps attended), and the World Cup is in town!

I believe most of us in this line of work seek out competition and enjoy watching individuals compete at the highest level. The energy associated with competition, especially at the global level, is unmatched! I also love the passion that comes with the World Cup. The Fletcher Farley offices are also buzzing with the energy of competition while we prepare for upcoming trials, mediations, and depositions.

We hope each and every one of you have a great summer and second half of the year. Thank you, as always, for your continued trust and partnership. We appreciate the opportunity to work with you and look forward to the second half of the year!

On May 14, 2026, the United States Supreme Court unanimously held that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) does not preempt state-law negligent selection claims against freight brokers. In Montgomery v. Caribe Transport II, LLC, Plaintiff alleged that C.H. Robinson negligently selected Caribe Transport even though it knew, or should have known, that the carrier was unsafe. The Court concluded that negligent selection claims fall within the FAAAA’s safety exception because a broker’s decision to select a motor carrier directly affects motor vehicle safety.

The United States Supreme Court resolved the preemption issues, but the remaining question in many cases will be whether state law recognizes negligent selection claims against brokers. Although not a broker liability case, the Texas Supreme Court’s recent decision in In re Home Depot U.S.A., Inc., may provide insight into how Texas courts will analyze the issue. There, the Court held that a passive shipper owed no duty under Texas law to protect the public from the negligence of an independent motor carrier it hired to transport goods. Plaintiffs asserting negligent-selection claims against brokers must still establish that state law imposes a duty on the broker. The Home Depot decision highlights that resolving the preemption issue does not eliminate the need to establish a duty under applicable state law.

While state law will ultimately determine whether a negligent selection claim succeeds, the United States Supreme Court’s ruling will likely lead to increased litigation against freight brokers following severe trucking accidents. During litigation, Plaintiffs will likely seek discovery regarding the broker’s evaluation process and procedures in deciding to select motor carriers. Brokers should review their screening processes and maintain records showing that they exercised reasonable care when selecting motor carriers.

Likewise, motor carriers should expect closer scrutiny of their safety records, regulatory compliance, and accident history. Strong safety performance and documented compliance programs may help carriers maintain broker relationships and mitigate litigation risk following severe collisions.

The United States Supreme Court decision clarifies the scope of FAAAA preemption. Going forward, freight brokers and motor carriers should expect increased scrutiny of carrier selection decisions and safety practices.