Supreme Court: Freight Brokers Can Face State Negligent Hiring Lawsuits
The Supreme Court unanimously ruled that freight brokers can face negligent hiring claims under state law.
Why it matters: The decision ends longstanding FAAAA preemption for brokers, exposing them to state tort lawsuits and raising the stakes for their vetting practices. Legal teams representing freight brokers, shippers, and insurers face new compliance hurdles and potential liability risks.
- Ruling in Montgomery v. Caribe Transport II, LLC clarifies FAAAA's safety exception.
- Freight brokers like C.H. Robinson now face state-law negligent hiring suits.
- The court overturned a prior Seventh Circuit decision favoring preemption.
- Caribe Transport II had a 'conditional' federal safety rating at the time of the 2017 crash.
The U.S. Supreme Court issued a unanimous ruling on May 14, 2026, holding that freight brokers are not shielded by the Federal Aviation Administration Authorization Act (FAAAA) from state-law negligent hiring claims. The landmark case, Montgomery v. Caribe Transport II, LLC, stemmed from a 2017 Illinois crash in which Shawn Montgomery's car was struck by a truck from Caribe Transport II, leading to the amputation of his leg.
- Montgomery alleged freight giant C.H. Robinson negligently hired Caribe despite the carrier’s 'conditional' safety rating from federal regulators.
- The justices reasoned that the FAAAA’s explicit safety exception allows state tort claims addressing motor vehicle safety to proceed.
- Justice Amy Coney Barrett wrote for the Court, while Justice Brett Kavanaugh emphasized, “Truck safety is a matter of life and death.”
- This decision reverses the Seventh Circuit, which had previously insulated brokers from such state claims.
Industry leaders are already reacting. Chris Burroughs of the Transportation Intermediaries Association compared the new expectation for brokers to travel agents being forced to judge airlines’ safety records. C.H. Robinson’s Chief Legal Officer Dorothy Capers signaled ongoing engagement with policymakers and industry groups to address new compliance duties.
What’s clear: Freight brokers must now reevaluate carrier vetting and risk protocols, with state tort exposure creating significant new liabilities. Legal advisers, risk managers, and insurers across the logistics and shipping sectors face complex operational and compliance recalibrations as a result of the decision (analysis).
By the numbers:
- 9-0 — Unanimous Supreme Court decision in Montgomery v. Caribe Transport II, LLC
- 2017 — Year of the Illinois crash at the heart of the case
- 1 — C.H. Robinson’s rank among U.S. freight brokers by size
Yes, but: Details about the scope of past safety violations and the financial impact on brokers remain unclear.