NAW Amicus: Expanded broker liability would raise costs and disrupt distribution supply chains

The National Association of Wholesaler-Distributors joined a coalition of business groups in filing an amicus curiae brief in Montgomery v. Caribe Transport II, LLC, urging the Court to hold that federal law preempts state-law negligence claims against freight brokers. The case has significant implications for wholesalers and distributors that hire motor carriers or rely on freight brokers to move goods efficiently and predictably across state lines.

The Court will decide whether the Federal Aviation Administration Authorization Act (FAAAA), 49 U.S.C. § 14501(c), preempts state negligent-hiring claims against brokers for selecting motor carriers. The outcome will determine whether wholesalers and distributors operate under uniform national transportation standards or face a patchwork of state tort rules that increase costs and legal uncertainty.

“Trucking is a key mode of transportation for America’s wholesaler-distributors,” said Brian Wild, Chief Government Relations Officer at NAW. “Subjecting brokers to state-by-state negligence lawsuits for performing that core service would reduce carrier options, would raise freight costs, and make it harder for distributors to serve customers efficiently and competitively.”

In its brief, NAW explains that negligent-hiring claims fall squarely within the FAAAA’s express preemption provision because they directly relate to a broker’s core service—arranging transportation of property by motor carrier. Congress enacted the FAAAA to prevent states from imposing inconsistent requirements on nationally integrated transportation services.

NAW also rejects arguments that the FAAAA’s limited “safety exception” applies. That exception preserves state authority only over safety regulations directly related to motor vehicles. Freight brokers do not operate or maintain trucks. Moreover, an extensive federal and state regulatory framework ensures motor vehicle safety.

NAW warns that allowing negligent-hiring claims to proceed would expose brokers to unpredictable liability, prompting narrower carrier selection and higher insurance and litigation costs—costs that would ultimately be borne by wholesalers, distributors, and consumers without improving safety outcomes.