Supreme Court: Freight Brokers Can Be Sued Over Carrier Selection

May 14, 2026

On May 14, 2026, the U.S. Supreme Court ruled unanimously in Montgomery v. Caribe Transport II, LLC (No. 24-1238) that federal law does not block state-law negligent-hiring claims against freight brokers. Justice Amy Coney Barrett wrote the opinion. Justice Brett Kavanaugh wrote a concurrence joined by Justice Samuel Alito.

The case began with a highway crash in Illinois. According to a summary by the law firm Cozen O’Connor, Shawn Montgomery was severely injured when a truck operated by the motor carrier Caribe Transport II struck his stopped tractor-trailer. The carrier held a conditional safety rating from the Federal Motor Carrier Safety Administration, with deficiencies cited in driver qualification, hours of service and maintenance. Montgomery sued the freight broker that had hired the carrier, arguing that it was negligent in selecting it. The Seventh Circuit held that the claim was preempted by federal law. The Supreme Court reversed.

The law at issue is the Federal Aviation Administration Authorization Act of 1994 (FAAAA). It preempts state laws related to the price, route or service of a motor carrier or broker, but it leaves states their authority to regulate safety “with respect to motor vehicles.” Federal appeals courts had split on whether that exception covers brokers: the Seventh and Eleventh Circuits had sided with brokers, the Sixth and Ninth against them. The Court held that a claim that a broker negligently selected an unsafe carrier falls within the safety exception.

The ruling does not make brokers automatically liable for crashes. As the law firm DLA Piper notes, it does not set the standard of care or say what counts as reasonable diligence in choosing a carrier. Those questions are left to state courts and state law.

What it means for shippers

  • Carrier vetting becomes a documented process. Expect brokers to ask more of the carriers they use and to keep records of safety ratings, insurance and inspection history for each load.
  • Ask how your freight is vetted. It is reasonable to ask a broker which safety checks it runs before tendering your load and how often it repeats them.
  • The cheapest truck may get harder to find. Carriers with poor safety records may find fewer brokers willing to use them. DLA Piper advises shippers to prepare for potential increases in brokerage rates.
  • If you choose carriers yourself, keep records too. DLA Piper also recommends that shippers with their own approved-carrier programs document how carriers are selected.
  • Get advice for your own contracts. This article is general information, not legal advice. Check with your attorney and your broker or carrier about how the decision affects your agreements.

Go Trucking Services provides LTL and FTL land transport in Greater Los Angeles and nationwide. See land transport or request a quote on the home page.

Sources:

Image: Tony Webster, via Wikimedia Commons (CC BY 2.0).

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