Supreme Court Ends Freight Broker Immunity: Negligent Hiring Claims Now Allowed

Key Details The U.S. Supreme Court ruled unanimously that freight brokers can be sued for negligent hiring practices. The decision in Montgomery v. Caribe Transport II overturned a lower court ruling and gives drivers a legal path to hold brokers accountable for carrier selection decisions. What Changed Freight brokers previously relied on federal preemption under the Federal Aviation Administration Authorization Act (FAAAA) to shield themselves from liability. The Supreme Court found that the FAAAA's safety exception preserves state authority to regulate motor vehicle safety, which includes requiring brokers to exercise ordinary care when choosing carriers. Why It Matters This decision fundamentally shifts liability in the industry. Brokers can no longer hide behind federal preemption when accidents occur due to poor carrier vetting. The ruling affects how brokers conduct background checks, safety reviews, and driver qualifications for all carrier partnerships. What's Next The case returns to lower courts for trial. Driver Shawn Montgomery can now pursue his negligent-hiring claim against C.H. Robinson after losing his leg in a truck accident. This opens the door for similar claims across the industry and likely signals increased litigation against major brokers nationwide.