On May 14, 2026, the U.S. Supreme Court unanimously ruled that freight brokers accused of hiring unsafe trucking companies can be sued in state courts under negligent-hiring claims. The 9-0 decision in Montgomery v. Caribe Transport II, LLC resolved a split among federal appeals courts: the Seventh and Eleventh Circuits had ruled that brokers were protected from those claims, while the Sixth and Ninth Circuits allowed them to proceed. The ruling interpreted the Federal Aviation Administration Authorization Act (FAAAA) motor vehicle safety exception, finding that brokers' carrier-selection decisions directly concern the safe operation of trucks on the road.
The case arose from a 2017 crash in Illinois in which Shawn Montgomery lost part of his leg after a semi-truck struck his parked tractor-trailer. Montgomery sued C.H. Robinson, the nation's largest freight broker, alleging the company negligently hired Caribe Transport despite the carrier having a "conditional" federal safety rating and a history of driver qualification deficiencies. Writing for the Court, Justice Amy Coney Barrett stated, "Requiring C.H. Robinson to exercise ordinary care in selecting a carrier 'concerns' motor vehicles—most obviously, the trucks that will transport the goods—therefore Montgomery's negligent-hiring claim falls within the FAAAA's safety exception, which saves it from preemption." The Supreme Court reversed the lower court ruling and remanded the case back to the Seventh Circuit for further proceedings.
Justice Brett Kavanaugh and Samuel Alito wrote in a concurring opinion that "brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies." Marsh Risk officials noted that "brokers may see increased involvement in bodily injury litigation related to carrier selection, which could lead to higher defense costs and potential indemnity exposure." The decision settles the circuit conflicts and clearly answers that brokers can be sued in state court for damages resulting from crashes involving carriers they hired. The ruling is expected to increase scrutiny of freight brokers' safety vetting practices and could expand litigation involving broker liability after major trucking crashes.
Freight brokers match shippers with more than 780,000 motor carriers operating in the United States. Justice Kavanaugh noted that there is no meaningful federal safety regulation of brokers' carrier selection practices; FMCSA requires brokers to select a federally registered carrier but does not otherwise impose safety standards on broker hiring decisions. If Congress preempted state tort law and simultaneously failed to impose any federal safety requirements on broker selection, brokers would operate in a "black hole with no meaningful safety-related regulation." The decision is expected to have broad implications for the U.S. trucking and logistics industry, with brokers now facing increased pressure to perform more rigorous vetting of carrier safety records.
Note: This summary draws on SupplyChain247's publicly visible headline and on sector background on the Supreme Court's Montgomery v. Caribe Transport decision.
Key Takeaways:
1. U.S. Supreme Court ruled 9-0 on May 14, 2026, allowing state negligent-hiring lawsuits against freight brokers
2. Montgomery v. Caribe Transport decision resolved federal circuit split on broker liability
3. Brokers can no longer rely on federal preemption defense in unsafe carrier selection cases
4. FAAAA motor vehicle safety exception covers broker negligent-hiring claims
5. Decision expected to reshape broker industry working with 780,000+ carriers in the U.S.
