Supreme Court: State Negligent Hiring Claims Against Freight Brokers Not Preempted
The Supreme Court unanimously ruled that state negligent hiring claims against freight brokers aren't preempted by federal law.
Why it matters: This decision clarifies liability exposure for thousands of freight brokers and ensures uniform handling of tort claims across the U.S. State law claims related to broker negligence can now move forward, impacting risk and litigation strategy for logistics providers.
- On May 14, 2026, the Court ruled state-law negligent hiring claims against freight brokers are not federally preempted.
- The unanimous decision allows suits like Montgomery v. Caribe Transport II, LLC to proceed under state law.
- The ruling resolves a split among federal circuits on federal preemption versus state safety exceptions.
- C.H. Robinson, the nation’s largest freight broker, was at the center of the case following a 2017 Illinois trucking accident.
The U.S. Supreme Court ruled on May 14, 2026, that state-law negligent hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act (FAAAA), clearing the way for such lawsuits throughout the United States.
- The decision stems from Montgomery v. Caribe Transport II, LLC, where Shawn Montgomery sued C.H. Robinson Worldwide after losing part of his leg in a 2017 Illinois trucking accident. Montgomery claimed C.H. Robinson was negligent in hiring a carrier with a poor safety record.
- The Court found that negligent hiring claims fall under a safety exception to the FAAAA, allowing states to regulate in this area despite federal law. Justice Brett Kavanaugh wrote, “Truck safety is a matter of life and death.”
- Previously, federal appellate courts were split: the Seventh and Eleventh Circuits had sided with federal preemption, while the Ninth and Sixth Circuits recognized the safety exception. The Supreme Court’s ruling resolves this divide and offers consistency for courts, brokers, and claimants nationwide. (industry analysis)
- This clarification affects thousands of freight brokers, especially large operators like C.H. Robinson, regarding potential liability in hiring decisions. The ruling is expected to shape litigation risk and diligence practices in the freight industry going forward.
Industry representatives criticized the ruling, with Chris Burroughs of the Transportation Intermediaries Association stating, “This is like asking travel agents to evaluate the safety of a given airline despite the fact that the airline has been licensed to fly by the federal government.”
By the numbers:
- 1 — The Supreme Court's decision was unanimous.
- 2017 — Year of the Illinois trucking accident underlying the case.
- 1 — C.H. Robinson’s national rank as the largest freight broker.
Yes, but: The ruling could increase the operational and insurance burdens on freight brokers who must now navigate more complex state liability standards.