The Supreme Court unanimously ruled that freight brokers can be sued under state negligence laws for allegedly hiring unsafe trucking companies, a major decision that could reshape the freight and logistics industry nationwide.
In a 9-0 decision, the court reversed lower rulings that had shielded freight brokers from certain lawsuits under federal law, opening the door for plaintiffs to pursue negligence claims after serious trucking accidents.
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The case, Montgomery v. Caribe Transport II, LLC, stemmed from a 2017 crash in Illinois involving a semi-truck arranged by freight broker C.H. Robinson, one of the nation’s largest freight brokerage firms.
Plaintiff Shawn Montgomery suffered catastrophic injuries, including the loss of part of his leg, after a truck driver crashed into his parked tractor-trailer along Interstate 70.
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Montgomery argued that C.H. Robinson shared responsibility because the company allegedly hired a carrier with known safety concerns and failed to vet the trucking company properly before arranging the shipment.
At the center of the legal dispute was the Federal Aviation Administration Authorization Act of 1994, or FAAAA, which freight brokers argued broadly protects them from state-level lawsuits involving broker services, pricing, and routes.
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Lower courts in the Seventh Circuit agreed with that interpretation and ruled that federal law preempted Montgomery’s negligence claims.
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But the Supreme Court rejected that position.
Writing for the unanimous court, Justice Amy Coney Barrett concluded that the law’s “safety exception” allows states to enforce claims tied to motor vehicle safety.
Barrett wrote that negligent hiring claims against brokers directly relate to highway safety because brokers choose which trucking companies will ultimately operate vehicles on public roads.
The ruling means freight brokers can no longer rely on federal preemption as a broad defense against claims that they negligently hired dangerous carriers.
Plaintiffs may now argue that brokers failed to properly review carrier safety records, inspection histories, driver qualifications or other warning signs before assigning freight.
The decision also resolves a split among federal appeals courts.
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The Sixth and Ninth Circuits had previously allowed similar negligence claims to proceed, while the Seventh Circuit had blocked them.
The Supreme Court’s ruling now establishes a uniform nationwide standard.
The trucking industry warned during the case that exposing brokers to negligence lawsuits could create major economic consequences.
Industry groups argued that increased litigation could drive up insurance costs, slow freight operations and force brokers to conduct much more extensive investigations before assigning loads.
Some also warned that higher operating costs could eventually be passed on to consumers through increased shipping prices.
Justice Brett Kavanaugh acknowledged those concerns in a concurring opinion.
He described the case as a close call but ultimately agreed that public safety concerns outweighed the industry’s legal arguments.
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Transportation attorneys expect the ruling to have an immediate impact.
Freight brokers may now tighten carrier screening procedures, monitor Federal Motor Carrier Safety Administration records more aggressively and create detailed documentation explaining why specific carriers were selected.
The decision could also trigger a new wave of litigation after catastrophic truck crashes, with plaintiffs increasingly targeting freight brokers alongside trucking companies and drivers, Commercial Carrier Journal reported.
“Our hearts continue to go out to the victims of truck accidents. Safety is foundational to who we are—our employees and their families travel these same roads, and our business depends on safe freight delivery,” C.H. Robinson Chief Legal Officer Dorothy Capers said.
“While we are disappointed in the Court’s decision, we will continue to operate responsibly, support stronger federal enforcement, and work constructively with regulators, carriers, and customers to strengthen the national safety system and support safe, reliable transportation across the country,” she said.
For the freight industry, the ruling marks one of the most significant legal shifts in years, placing far greater scrutiny on how brokers select the carriers moving goods across America.
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