Trucking

State of play.

• The Supreme Court holds the most consequential open question in trucking liability. Oral arguments in Montgomery v. C.H. Robinson (No. 24-1238) are complete; the decision will determine whether the FAAAA preempts state negligent-hiring claims against freight brokers nationwide, resolving a circuit split that has shielded brokers from tort liability in most federal courts .
• Texas is simultaneously developing shipper liability doctrine. The Texas Supreme Court has accepted review in Home Depot (No. 25-0317) to decide whether shippers owe a duty of care to third-party motorists injured by independent contractor carriers they hire—a question that, if answered affirmatively, would extend negligent-hiring exposure well beyond brokers to every shipper in the logistics chain .
• FMCSA has finalized a rule restricting non-domiciled CDLs to H-2A, H-2B, and E-2 visa holders, creating immediate compliance burdens for carriers employing non-citizen drivers and tightening the labor pool .
• The UP-NS $85 billion merger resubmission is before the STB, with the combined entity projected at 39% market share and a decision timeline extending into 2027—the most significant rail-consolidation proceeding in decades, with direct implications for trucking's intermodal competitive position .
• For counsel advising carriers, brokers, or shippers, the practical baseline is a liability landscape in active judicial flux: two high courts are simultaneously rewriting the duty-of-care map for freight intermediaries, and the outcome of either case will require immediate reassessment of indemnification structures, carrier-vetting protocols, and insurance placements.

Where things stand.

• FAAAA preemption of broker negligent-hiring claims is the dominant unresolved doctrine. Federal circuits have broadly held that state tort claims against brokers for carrier selection are preempted under 49 U.S.C. § 14501(c); the Supreme Court's decision in Montgomery v. C.H. Robinson will either confirm that shield or open brokers to state tort liability in all jurisdictions .
• Shipper duty-of-care to third parties is unsettled in Texas and nationally. The Texas Supreme Court's review of the Home Depot case tests whether a shipper's contractual engagement of a carrier is sufficient, or whether independent vetting is required to avoid liability for carrier negligence toward third parties .
• FMCSA's non-domiciled CDL final rule is in force, limiting non-domiciled CDL eligibility to H-2A, H-2B, and E-2 visa holders and imposing new verification obligations on carriers .
• Zero-tolerance drug and alcohol policies for safety-sensitive drivers are being upheld against disability-accommodation defenses. A Québec court reinstated the termination of a commercial driver who tested positive, rejecting an alcoholism accommodation argument—a data point for US carriers calibrating their own policies against ADA exposure .
• Commercial vehicle backing-accident liability in Texas produces significant settlements without fault admissions. The $500,000 Harris County settlement for a wastewater-truck backing collision—resolved through insurance negotiation, no admission of liability—illustrates the settlement value of municipal-type service vehicle claims in the Houston market .
• FedEx Freight is spinning off as an independent LTL carrier, with the separation targeted for June 2026; the structural change will affect shipper contracts, carrier agreements, and any indemnification arrangements tied to the FedEx parent entity .
• Rail consolidation is reshaping intermodal competition. The UP-NS merger resubmission—39% combined market share, 50,000+ route miles, STB decision expected 2027—is the structural backdrop against which trucking's intermodal competitive position will be set for a generation .
• Trucker-led supply blockades carry force majeure and protest-rights implications. Ireland's five-day fuel blockade by truckers and haulers—leaving roughly 500 of 1,500 service stations dry—generated force majeure exposure across commercial contracts and legal challenges to government exclusion of protest organizers from negotiations .

Latest developments.

• Supreme Court oral arguments completed in Montgomery v. C.H. Robinson (No. 24-1238) on FAAAA preemption of state negligent-hiring claims against freight brokers; decision pending .
• Texas Supreme Court grants review in Home Depot shipper-liability case (No. 25-0317); oral argument expected .
• FMCSA finalizes non-domiciled CDL rule restricting eligibility to H-2A, H-2B, and E-2 visa holders .
• UP-NS resubmit amended $85 billion merger application to STB with 39% market-share projections and St. Louis switching-yard divestiture commitment .
• Norfolk Southern Q1 2026 net income falls 27% year-over-year, driven by absence of East Palestine insurance payments and mounting merger costs .
• Gustin Law Firm secures $500,000 settlement in Harris County wastewater-truck backing-accident case, no fault admission .
• Québec court reinstates termination of commercial driver who tested positive, rejecting alcoholism-as-accommodation defense .
• FedEx Freight outlines independent growth strategy ahead of June 2026 spinoff from FedEx parent .
• Landstar System GC departs to join Scopelitis Garvin, the leading transportation-law boutique; interim GC named .
• Ireland trucker-led fuel blockades trigger force majeure exposure across commercial contracts and government legal challenges .

Active questions and open splits.

• FAAAA preemption scope for broker negligent-hiring claims. The circuit split is real: some circuits hold all state tort claims against brokers preempted; others carve out safety-related claims. Montgomery v. C.H. Robinson will set the national rule—and the answer will either open brokers to multi-state tort exposure or permanently insulate them .
• Whether the FAAAA safety exception reaches broker carrier-selection practices. Even if the Court finds preemption, the scope of the motor-vehicle safety carve-out is contested. A narrow reading protects brokers; a broad reading could preserve state claims that directly implicate vehicle operation decisions .
• Shipper duty of care to third-party motorists. The Texas Supreme Court has not resolved whether a shipper's obligation to vet carriers extends to third parties injured by those carriers. A duty finding would require shippers to build independent carrier-qualification programs beyond contractual requirements—with insurance and indemnification consequences nationwide .
• Non-domiciled CDL rule compliance burden on carriers. The FMCSA final rule creates verification obligations for carriers employing non-citizen drivers; the practical compliance framework—what documentation satisfies the rule, how carriers audit existing workforces—is not yet settled in practice .
• ADA and accommodation limits for safety-sensitive driver terminations. The Québec zero-tolerance ruling is persuasive, not binding, in US jurisdictions. Whether US courts will similarly hold that alcoholism does not shield a CDL driver from termination under a zero-tolerance policy—given FMCSA drug-and-alcohol program requirements—remains an active tension between ADA accommodation doctrine and safety-sensitive-position carve-outs .
• FedEx Freight spinoff contract continuity. Shipper contracts, carrier agreements, and indemnification arrangements written against the FedEx parent entity will need to be reviewed for assignment, novation, or termination rights as the LTL business separates into an independent public company .
• STB competitive-remedy adequacy in the UP-NS merger. The switching-yard divestiture and market-share concessions signal the STB's scrutiny threshold, but whether those remedies are sufficient—and what additional conditions the STB may impose—will define the template for any future Class I consolidation .

What to watch.

• Supreme Court decision in Montgomery v. C.H. Robinson (No. 24-1238)—expected by end of the October 2025 Term—will immediately reset broker liability exposure and insurance pricing across the freight industry .
• Texas Supreme Court oral argument and decision in the Home Depot shipper-liability case (No. 25-0317); a duty finding reshapes carrier-vetting obligations for every shipper using independent contractors .
• FMCSA enforcement posture and carrier-compliance guidance on the non-domiciled CDL final rule as carriers audit existing driver workforces .
• STB substantive review of the resubmitted UP-NS merger application and any additional remedy demands; the competitive-condition framework will influence intermodal pricing and trucking's modal share .
• FedEx Freight June 2026 spinoff closing and any contract-continuity disputes that surface in the transition period .