US Supreme Court Ends Legal Shield for Trucking Brokers

The US Supreme Court has ruled unanimously that freight brokers can be sued under state law for negligent hiring if they contract trucking companies with poor safety records that later cause highway accidents.

The decision in Montgomery v Caribe Transport II, LLC is expected to have major consequences for the American freight and logistics industry, potentially increasing insurance costs and forcing brokers to tighten safety checks when selecting carriers.

In a 9-0 ruling written by Justice Amy Coney Barrett, the court rejected arguments that federal law shields freight brokers from personal injury lawsuits linked to crashes involving the trucking companies they hire.

The case centred on a 2017 collision in Illinois involving truck driver Shawn Montgomery, who suffered severe injuries leading to the amputation of one of his legs.

Mr Montgomery had parked his tractor-trailer on the side of a highway when it was struck by another truck operated by Caribe Transport II. The shipment had been arranged by freight brokerage giant C.H. Robinson Worldwide.

Mr Montgomery sued the driver, the trucking company and the broker, alleging that C.H. Robinson had failed to exercise reasonable care by hiring a carrier with known safety concerns.

According to court filings, Caribe Transport II held a “conditional” safety rating from the Federal Motor Carrier Safety Administration (FMCSA) at the time of the crash, with reported problems relating to driver qualifications and compliance with hours-of-service rules.

For years, freight brokers have relied on a federal law known as the Federal Aviation Administration Authorization Act (FAAAA) to argue that state-level negligence claims were pre-empted because they interfered with broker services.

But the Supreme Court focused on an exception within the law that preserves state authority over motor vehicle safety regulations.

Justice Barrett wrote that negligent hiring claims against brokers are directly connected to road safety because they concern the selection of trucking companies operating vehicles on public highways.

“The negligent-hiring tort against brokers, like the negligence tort against trucking companies, exists to keep unsafe trucks and unsafe drivers off America’s highways,” the opinion said.

Industry groups warned that the ruling could increase legal and financial pressures across the logistics sector.

The Transportation Intermediaries Association previously argued that brokers may now face a sharp rise in litigation and insurance costs as they are forced to conduct more extensive safety reviews of carriers.

Some analysts estimate broker liability insurance premiums could rise between three and five times current levels.

The decision may also disadvantage smaller trucking firms, especially those without detailed federal safety records.

More than 90% of US motor carriers currently lack formal FMCSA safety ratings, largely because of staffing shortages and limited federal oversight capacity.

Legal experts say the ruling does not automatically make brokers responsible for every trucking accident, but it does remove a powerful defence that has often led courts to dismiss such lawsuits early.

Instead, future cases are likely to focus on whether brokers acted reasonably when vetting trucking companies before awarding contracts.

The ruling sends the case back to the US Court of Appeals for the 7th Circuit for further proceedings.

For the country’s freight brokerage industry, however, the judgment signals a significant shift in legal accountability — one that could reshape how trucking companies are selected across the US supply chain.