The U.S. Supreme Court ruled unanimously on May 14, 2026, that federal law does not shield freight brokers from state-level personal injury lawsuits. The 9-0 opinion in Montgomery v. Caribe Transport II, LLC was authored by Justice Amy Coney Barrett, with a concurrence by Justice Brett Kavanaugh joined by Justice Samuel Alito. Plaintiff Shawn Montgomery lost his leg and sustained severe, permanent injuries when a Mack truck operated by Caribe Transport veered off course and struck his parked tractor-trailer on an Illinois highway in 2017.
Freight broker C.H. Robinson Worldwide, Inc. had coordinated the shipment. Montgomery alleged that C.H. Robinson should have known the carrier it hired had a "conditional" safety rating and a history of driver qualification deficiencies. The decision ended the freight brokerage industry's federal preemption defense that had been in place for decades. Justice Barrett wrote, "Requiring C.H. Robinson to exercise ordinary care in selecting a carrier 'concerns' motor vehicles," concluding that Montgomery's negligent-hiring claim falls within the FAAAA's safety exception.
The decision resolves a split among federal appeals courts that had left brokers in different parts of the country subject to varying liability standards. The logic applies to anyone in the supply chain who selects a carrier and has access to publicly available safety data showing that the carrier presents an elevated risk — not just licensed broker authority holders. As Justices Kavanaugh and Alito noted in their concurring statement, plaintiffs still must prove that the broker should have known the motor carrier was unsafe, and brokers hiring reputable carriers with proven safety records should be able to successfully defend themselves.
C.H. Robinson Chief Legal Officer Dorothy Capers stated, "Our hearts continue to go out to the victims of truck accidents; safety is foundational to who we are," adding, "While we are disappointed in the Court's decision, we will continue to operate responsibly, support stronger federal enforcement, and work constructively with regulators, carriers, and customers to strengthen the national safety system." The nuclear verdict environment in trucking litigation has produced eight-figure and nine-figure outcomes against motor carriers; those same jury dynamics now apply to brokers, and the insurance industry has not yet priced this exposure. Industry observers say plaintiffs' attorneys may more aggressively pursue negligent-selection claims after catastrophic crashes, and brokers could now face more pressure to consider safety records when selecting carriers rather than focusing only on speed and price.
Note: This summary draws on SupplyChainBrain's publicly visible headline + subhead + opening paragraph and on sector background on freight broker liability and trucking safety.
Key Takeaways:
1. US Supreme Court ruled 9-0 on May 14, 2026, that freight brokers can be held liable under state law for negligently hiring unsafe motor carriers.
2. In Montgomery v. Caribe Transport II, LLC, Shawn Montgomery's negligent-hiring claim against C.H. Robinson over a 2017 Illinois crash overcame the federal preemption shield.
3. Justice Barrett's opinion held that the FAAAA's safety exception preserves states' authority to require brokers to exercise ordinary care in carrier selection.
4. The ruling resolves the split among federal appeals courts nationwide on broker liability and is expected to increase insurance costs across the industry.
5. Industry observers anticipate increased negligent-selection litigation after catastrophic crashes and heightened scrutiny of broker vetting procedures.
