This is not exactly the same as your problem but it may help somebody else. The idea is to highlight the top hovered child without affecting the parents below: http://jsfiddle.net/skibulk/mcq6Lvw3/6/
$("div").hover(
function (e) {
e.stopPropagation();
$(this).addClass('active').parents().removeClass('active');
},
function (e) {
$(this).removeClass('active').parent().addClass('active');
}
);