The U.S. Supreme Court just handed down a major ruling that could dramatically reshape the freight and logistics industry, unanimously deciding that freight brokers can be sued under state negligence laws for hiring unsafe trucking companies.
The case, Montgomery v. Caribe Transport II, LLC, centered around a devastating 2017 crash in Illinois involving a semi-truck arranged by freight giant C.H. Robinson, one of the largest freight brokers in America. Plaintiff Shawn Montgomery lost part of his leg after a truck driver slammed into his parked tractor-trailer on Interstate 70. Montgomery argued that C.H. Robinson should share responsibility because the company allegedly hired a carrier with known safety problems and ignored red flags before putting the truck on the road.
At the center of the legal fight was the Federal Aviation Administration Authorization Act of 1994, commonly known as the FAAAA. Freight brokers argued that the law shields them from state-level lawsuits because it broadly preempts regulations related to broker “prices, routes, or services.” Lower courts in the Seventh Circuit sided with C.H. Robinson, ruling that federal law blocked Montgomery’s negligence claims.
But the Supreme Court reversed that decision in a unanimous 9-0 ruling written by Justice Amy Coney Barrett.
The Court found that the FAAAA contains a “safety exception” allowing states to enforce laws involving motor vehicle safety. Barrett wrote that negligent hiring claims against freight brokers “concern” motor vehicles because brokers are responsible for selecting the trucking companies that ultimately operate the vehicles on public highways.
In practical terms, the ruling means freight brokers can no longer rely on federal preemption as a blanket shield against lawsuits involving crashes caused by carriers they hired. Plaintiffs can now argue in court that brokers failed to properly vet trucking companies, drivers, or safety records before arranging shipments.
The trucking industry is already warning the decision could have sweeping consequences.
Industry groups argued that exposing brokers to negligence lawsuits could increase insurance costs, trigger more litigation, and force brokers to conduct far more intensive investigations into carriers before assigning loads. Some fear it could slow freight operations nationwide and increase shipping costs that ultimately get passed on to consumers.
Justice Brett Kavanaugh acknowledged those concerns in a concurring opinion, noting the case was “close” and recognizing that the ruling could create significant economic ripple effects. Still, he agreed that public safety concerns outweighed the industry’s preemption arguments.
Many brokers may now be forced to tighten their carrier-screening procedures, monitor FMCSA safety scores more aggressively, and create detailed documentation showing why a particular carrier was selected.
The ruling also resolves a long-running split between federal appeals courts. The Ninth and Sixth Circuits had previously allowed these types of negligence claims to move forward, while the Seventh Circuit had blocked them under federal preemption rules. The Supreme Court’s decision now establishes a nationwide standard.
Transportation attorneys say the decision could open the door to a wave of new lawsuits targeting brokers after catastrophic truck accidents. Rather than suing only the trucking company and driver, plaintiffs’ lawyers are now likely to pursue brokers as well, particularly in cases involving carriers with poor inspection histories, safety violations, or questionable records.
