SCOTUS Unanimously Rules Freight Brokers Can Be Sued Over Unsafe Carriers

The U.S. Supreme Court delivered a major legal blow to the freight brokerage industry Thursday, unanimously ruling that freight brokers can be sued under state negligence laws for allegedly hiring unsafe trucking companies.

In a 9-0 decision, the justices ruled that federal law does not broadly shield freight brokers from liability when plaintiffs claim brokers negligently selected dangerous carriers involved in catastrophic crashes.

The case, Montgomery v. Caribe Transport II, LLC, could significantly reshape the freight and logistics industry nationwide by exposing brokers to far greater legal scrutiny and civil liability.

The lawsuit stemmed from a devastating 2017 accident in Illinois involving a semi-truck shipment arranged by C.H. Robinson, one of the nation’s largest freight brokerage firms.

Plaintiff Shawn Montgomery suffered catastrophic injuries — including partial loss of his leg — after a truck driver crashed into his parked tractor-trailer along Interstate 70.

Montgomery argued that C.H. Robinson shared responsibility for the crash because the broker allegedly hired a trucking carrier with known safety concerns and failed to properly vet the company before assigning the shipment.

At the center of the legal dispute was the Federal Aviation Administration Authorization Act of 1994, commonly referred to as the FAAAA.

Freight brokers argued the law broadly preempted state negligence claims tied to broker services, transportation routes, and pricing decisions.

Lower federal courts in the Seventh Circuit accepted that argument and ruled Montgomery’s claims were barred under federal law.

But the Supreme Court unanimously rejected that interpretation.

Writing for the court, Justice Amy Coney Barrett concluded that the FAAAA’s “safety exception” allows states to enforce claims directly tied to motor vehicle safety.

Barrett explained that negligent hiring claims against freight brokers directly impact highway safety because brokers decide which trucking companies ultimately place vehicles on public roads.

The ruling means freight brokers can no longer rely on federal preemption as a blanket legal defense against allegations they hired dangerous carriers.

Plaintiffs will now be able to argue brokers failed to adequately review carrier safety histories, inspection records, driver qualifications, or other warning signs before arranging shipments.

The Supreme Court’s decision also resolves a long-standing split among federal appeals courts.

The Sixth and Ninth Circuits had previously allowed similar negligence lawsuits to proceed, while the Seventh Circuit had barred them.

Thursday’s ruling now establishes a single nationwide standard.

The freight and trucking industry had warned the Supreme Court that allowing such lawsuits could produce major economic consequences.

Industry groups argued increased litigation exposure could dramatically raise insurance costs, slow freight operations, and force brokers to conduct extensive carrier investigations before assigning loads.

Some also warned that higher operational costs could eventually be passed along to consumers through increased shipping prices and supply chain costs.

Justice Brett Kavanaugh acknowledged those concerns in a concurring opinion, describing the case as a “close call.”

Still, Kavanaugh ultimately agreed that public safety concerns outweighed the industry’s legal arguments.

Transportation attorneys now expect the ruling to immediately change industry practices.

Freight brokers will likely begin tightening carrier screening procedures, increasing monitoring of Federal Motor Carrier Safety Administration safety records, and maintaining detailed documentation explaining why carriers were selected for shipments.

Legal experts also predict a major increase in lawsuits following severe trucking accidents, with plaintiffs now expected to target freight brokers alongside trucking companies and drivers.

Following the ruling, Dorothy Capers expressed disappointment while emphasizing the company’s commitment to transportation safety.

“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,” 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 added.

For the logistics industry, the ruling marks one of the most significant legal shifts in years and places far greater responsibility on brokers overseeing how freight moves across America’s highways.