For years, freight brokers used federal law to ask courts to dismiss negligent-selection claims before costly discovery began. That defense is now much narrower. In Montgomery v. Caribe Transport II, LLC, the U.S. Supreme Court ruled that state-law claims against brokers may fall within a safety exception to the Federal Aviation Administration Authorization Act of 1994 (FAAAA).
The ruling does not make a broker responsible for every crash caused by a motor carrier. However, it may allow more negligence claims to move forward. It also puts more focus on how brokers screen and approve carriers. Our transportation liability lawyers at Fee, Smith & Sharp are reviewing how this decision may affect lawsuits, insurance, and business relationships in the freight industry.
How Federal Law Protected Freight Brokers
Freight brokers connect shippers with motor carriers that have the trucks and drivers needed to move goods. Brokers usually do not own the trucks or employ the drivers.
Congress passed the FAAAA in 1994 to reduce government control over the trucking industry. The law generally keeps states from enforcing rules tied to a broker’s or carrier’s prices, routes, or services involving the movement of property.
Brokers used this law to argue that negligent-selection claims interfered with their services. Some courts agreed and dismissed these claims before the parties gathered evidence or fully reviewed the facts.
Courts Disagreed About the Safety Exception
Other courts found that the FAAAA’s motor vehicle safety exception allowed these claims. The Supreme Court agreed to hear Montgomery to settle that disagreement.
The Crash Behind Montgomery
The case began after a 2017 crash in Illinois. Shawn Montgomery had stopped his tractor-trailer along the highway when another truck struck him and caused serious injuries.
The truck was operated for Caribe Transport II, LLC. Freight broker C.H. Robinson Worldwide, Inc. had selected the carrier. Montgomery claimed the broker should have known that safety information about Caribe raised concerns.
A federal trial court dismissed the claim based on the FAAAA. An appeals court agreed, but the Supreme Court later reversed those rulings.
What the Supreme Court Decided
In May 2026, the Supreme Court focused on the FAAAA’s safety exception. That part of the law says federal preemption does not limit a state’s safety authority “with respect to motor vehicles.”
Justice Amy Coney Barrett wrote the unanimous opinion. She explained that state negligence laws are one way that states protect the public. A claim that a broker failed to use reasonable care when choosing a carrier is closely tied to the safety of trucks traveling on public roads. The Court therefore ruled that Montgomery’s claim fell within the safety exception and was not blocked by federal law.
What the Court Did Not Decide
The Court did not rule that C.H. Robinson was negligent or owed damages. It only allowed the claim to continue under state law.
Montgomery must still prove that the broker failed to use reasonable care. He must also show that the carrier-selection decision played a part in causing the crash and his injuries.
More Claims May Reach Discovery
Freight brokers may now have a harder time getting negligent-selection claims dismissed at the start of a case. Injured people may also name brokers more often in lawsuits involving serious truck crashes. During discovery, plaintiffs may ask for:
- Carrier approval files
- Safety ratings and inspection records
- Internal emails and notes
- Carrier-screening rules
- Insurance and operating-authority checks
Plaintiffs Must Still Prove Their Claims
The decision does not mean every negligent-selection claim will win. A plaintiff must prove that the broker failed to use reasonable care and that the selection decision helped cause the harm. A broker may defend itself by showing that it made a reasonable choice based on the information available at the time.
Carrier Screening May Face Greater Scrutiny
Active operating authority and proof of insurance may not be enough to show that a broker used reasonable care in every case. After a serious crash, attorneys may look at whether the broker reviewed warning signs and followed its own approval process. Brokers should consider whether their policies cover safety ratings, inspection results, out-of-service rates, crash records, insurance lapses, and changes in operating authority.
Written Rules Should Match Daily Practices
A strong written policy may not help if employees often ignore it or make exceptions without keeping records. Brokers should document what information they reviewed and why they approved a carrier. Those records may later help show that the broker acted reasonably.
Insurance and Underwriting May Change
This decision may change how insurance companies look at freight brokers. Even if a broker does nothing wrong and wins the case, getting through the lawsuit is going to be costly. As a result, insurers will start asking tougher questions about how brokers screen drivers, train teams, and maintain their records before issuing a policy.
Policy Terms May Receive Closer Review
Insurers will not just ask questions. They will likely tighten the reins on coverage. Brokers could see higher deductibles, lower coverage limits, or new rules on what gets covered. Insurance companies want to see that brokers actually follow their safety standards and keep close tabs on whether a carrier loses its operating authority, lets insurance lapse, or drops its safety rating.
Business Contracts May Also Change
The Montgomery decision may also lead brokers, carriers, shippers, logistics companies, and insurers to take a closer look at their contracts. They may review who must cover legal costs, what insurance is required, and who is responsible if a safety problem leads to a crash.
Shippers may ask for stricter carrier-screening rules. Brokers may also seek more insurance and legal protection from carriers.
Contracts May Not Tell the Whole Story
A contract cannot prevent every negligent-selection claim. Courts may also review how the parties actually worked, who chose the carrier, and whether the contract matches the real business relationship.
A New Liability Landscape for the Freight Industry
Montgomery does not create automatic broker liability. It removes a broad federal defense that had allowed many brokers to leave these cases before all the facts were reviewed.
The result may be more lawsuits focused on carrier screening, safety records, internal policies, and documentation. The decision may also affect insurance and transportation contracts.
Freight businesses should review their screening steps, records, insurance, and agreements. A clear process that employees follow every time may help show that a broker acted reasonably when choosing a motor carrier.
