The US Supreme Court May Change Broker Liability Rules for Freight Safety

The US Supreme Court has agreed to hear the case Montgomery v. Caribe Transport II, LLC, which could radically change the approach to the liability of freight brokers for accidents involving carriers they hire. At the center of the dispute is the question of whether brokers can be held civilly liable under state laws for so-called 'negligent selection of a carrier,' or whether such claims are preempted by federal law.

The case arose from a 2017 accident in which driver Sean Montgomery was injured. The accident involved a truck from the carrier Caribe Transport II, hired by broker C.H. Robinson. The plaintiff claims that the broker was negligent in selecting the carrier and should be held liable alongside the driver and the transportation company.

Federal lower courts sided with the broker, stating that the plaintiff's claims fall under the Federal Aviation Administration Authorization Act (FAAAA), which limits state interference in the regulation of broker and carrier services. Details of the parties' positions are outlined in an analytical article by FreightWaves.

The FAAAA contains a broad federal preemption clause prohibiting states from enacting rules 'related to a broker's prices, routes, and services.' However, the law also includes an exception allowing states to regulate safety matters. The dispute has arisen around the interpretation of this exception.

Legal experts note that courts in different US circuits have approached such claims differently, creating legal uncertainty. A review of the case and procedural history is published on SCOTUSblog.

In a written position submitted to the Supreme Court, C.H. Robinson argues that brokers do not operate vehicles and do not directly control drivers. The company stated that expanding broker liability would lead to fragmented rules and increased costs in the national supply chain. As noted in the FreightWaves article, company representatives emphasized that 'brokers perform a coordination function, and safety issues lie with the carriers.'

Industry associations supported this position, warning that allowing such claims at the state level could lead to increased litigation and insurance costs.

Oral arguments in the case are scheduled for March 4, 2026. A decision is expected by the end of the current Supreme Court term, in June or July. The outcome of the case could determine whether freight brokers nationwide will be protected from claims of negligent carrier selection or face a new wave of state-level liability.