Supreme Court Rules Freight Brokers Can Be Sued for Negligent Hiring Under State Law

On May 15, 2026, the U.S. Supreme Court issued a unanimous decision in Montgomery v. Caribe Transport II, LLC that fundamentally changes the legal landscape for freight brokers. The ruling eliminates a federal defense that brokers have relied on for years to block negligent hiring lawsuits — and it takes effect immediately.

If you are a freight broker in North Carolina or anywhere in the United States, this decision directly affects how you select carriers and how much legal risk you carry when you do.

 

What the Court Decided

The Court ruled 9-0 that the Federal Aviation Administration Authorization Act of 1994 (FAAAA) does not preempt — that is, does not block — state-law claims against freight brokers for negligently selecting unsafe motor carriers.

For decades, brokers facing negligent hiring lawsuits pointed to the FAAAA’s preemption clause, which bars state laws “related to a price, route, or service” of brokers or carriers. Courts were divided on whether that clause applied to negligent hiring claims. The Supreme Court resolved the split and sided with the plaintiff: the FAAAA contains a safety exception that preserves state authority over motor vehicle safety, including common-law negligent hiring claims against brokers.

Writing for the Court, Justice Barrett explained that a claim is “with respect to motor vehicles” — and therefore falls within the safety exception — if it concerns the trucks used to move goods. A claim alleging a broker negligently selected an unsafe carrier whose truck caused injury fits squarely within that definition.

 

The Facts Behind the Case

In December 2017, Shawn Montgomery was pulled over on Interstate 70 in Illinois with a mechanical issue when a tractor-trailer rear-ended his stopped vehicle. The accident was catastrophic — Montgomery lost his leg and suffered permanent disfigurement.

The truck was operated by Caribe Transport II, an Indiana-based motor carrier. The shipment had been arranged by C.H. Robinson Worldwide, one of the largest freight brokers in the country. Montgomery sued C.H. Robinson, alleging the broker was negligent in selecting Caribe because federal regulators had already given the carrier a “conditional” safety rating — identifying deficiencies in driver qualification, hours-of-service compliance, and crash rates.

C.H. Robinson moved to dismiss, arguing the FAAAA preempted the claim. The district court and the Seventh Circuit agreed. The Supreme Court reversed.

 

Why This Matters for Freight Brokers

Before this ruling, the FAAAA preemption defense allowed many freight brokers to get negligent hiring claims dismissed before the case ever reached discovery or trial. That procedural advantage is now gone. Claims will proceed on the merits, meaning courts will look at the actual facts of how you selected your carriers.

The practical effect: injured parties and their attorneys will now name freight brokers as defendants in trucking accident cases as a matter of course. If the carrier you selected has a poor safety history, you will be asked to explain why you chose them — and you will need documentation to support your answer.

 

The Standard Is Reasonableness, Not Perfection

It is important to understand what this ruling does not do. It does not impose strict liability on brokers. It does not mean you are automatically responsible every time a carrier you selected has an accident.

Justice Kavanaugh, concurring, emphasized that brokers who “act reasonably and select reputable carriers should be able to successfully defend against state tort suits.” The standard is whether you exercised reasonable care in your selection process. If you have a documented system for checking carrier safety and you follow it consistently, you are well-positioned to defend yourself.

 

Five Steps Freight Brokers Should Take Now

1. Vet Every Carrier Before Tendering a Load

Before assigning any shipment, check the carrier’s FMCSA safety rating, inspection history, out-of-service rates, and insurance status. Save that information in a retrievable file tied to the specific load. This documentation is your first line of defense if a claim arises.

2. Adopt a Written Carrier Selection Policy

Put your safety standards in writing. Define what ratings, scores, and histories are acceptable — and what disqualifies a carrier. For example, a policy might state that any carrier with a “conditional” or “unsatisfactory” FMCSA safety rating will not be used. A written policy shows a court that your process is deliberate, not ad hoc.

3. Update Your Carrier Agreements

Ensure your contracts with carriers include indemnification provisions requiring the carrier to defend and hold you harmless if their operations cause injury. Require carriers to maintain adequate insurance, and include a clause obligating them to notify you immediately if their safety rating changes.

4. Review Your Insurance Coverage

Contact your insurance agent to confirm that your general liability and errors & omissions policies cover negligent selection claims. Assess whether your current coverage limits are adequate given this expanded exposure. If you do not already carry contingent auto liability coverage, now is the time to discuss it.

5. Monitor Carriers on an Ongoing Basis

A one-time safety check at onboarding is not enough. Implement periodic re-screening of your carrier panel — quarterly at a minimum. A carrier that had a satisfactory rating when you first signed them may have deteriorated since. Ongoing monitoring demonstrates that your commitment to safety is not just a formality.

 

Act Now — There Is No Grace Period

This ruling is effective immediately. Plaintiffs’ attorneys are already aware of Montgomery v. Caribe Transport and will begin filing negligent hiring claims against brokers across North Carolina and nationally. We recommend treating this as a 30-day priority to get your carrier vetting and documentation practices in order.

 

How We Can Help

Our transportation law team regularly advises North Carolina freight brokers on compliance, risk management, and litigation defense. We can assist with drafting carrier selection policies, reviewing and updating carrier agreements, coordinating with your insurance providers, and defending against negligent hiring claims if they arise.

 

Contact us today to discuss how this decision affects your operations and what steps you should take.

This post is for informational purposes only and does not constitute legal advice.