The Supreme Court unanimously ruled that freight brokers can be held liable under state negligence laws for allegedly hiring unsafe trucking companies, a decision that could reshape the U.S. freight and logistics industry. In a 9-0 ruling in Montgomery v. Caribe Transport II, LLC, the court reversed lower court decisions that had previously shielded brokers from certain state-level lawsuits under federal law.
The case originated from a 2017 crash in Illinois, in which plaintiff Shawn Montgomery suffered catastrophic injuries, including the loss of part of his leg, after a truck arranged by C.H. Robinson collided with his parked tractor-trailer on Interstate 70. Montgomery argued that the broker failed to properly vet the trucking company, which allegedly had known safety concerns.
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At issue was the Federal Aviation Administration Authorization Act of 1994 (FAAAA), which freight brokers have historically argued broadly preempts state-level claims involving pricing, routes, and broker services. Lower courts in the Seventh Circuit had agreed, blocking Montgomery’s negligence claims. The Supreme Court rejected that interpretation, citing the law’s “safety exception” and emphasizing that negligent hiring directly affects highway safety.
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Justice Amy Coney Barrett, writing for the unanimous court, said brokers’ responsibility for selecting carriers impacts public safety on highways, meaning federal preemption cannot shield brokers from state negligence claims. Justice Brett Kavanaugh, in a concurring opinion, acknowledged the economic concerns raised by the industry but concluded that public safety outweighed potential business impacts. The ruling also resolves a split among federal appeals courts, establishing a uniform nationwide standard.
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Industry groups warned that the decision could increase litigation, raise insurance costs, and require brokers to conduct more extensive carrier reviews before assigning shipments. C.H. Robinson’s Chief Legal Officer, Dorothy Capers, said the company remains committed to safety and responsible operations, noting that the ruling places greater scrutiny on broker decisions while reinforcing the importance of strong federal enforcement and national safety standards.