Supreme Court Decision Raises Carrier-Selection Risk for Wholesale Distributors
In Montgomery v. Caribe Transport II, LLC, the U.S. Supreme Court held that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state-law negligent-hiring claims against a transportation broker that allegedly selected an unsafe motor carrier. The plaintiff alleged that the broker arranged transportation with a carrier that had a conditional federal safety rating and known safety deficiencies, and that this negligent selection contributed to a serious truck crash. The Court concluded that even if the FAAAA preemption provision otherwise applied, the claim fell within the FAAA's safety exception because negligent carrier selection concerns motor-vehicle safety.
Click here
for more information, including implications for wholesale distributors and best practices to minimize negligent-hiring exposure.