Full Breakdown
Supreme Court Allows State Lawsuits Against Freight Brokers Over Unsafe Carrier Hiring
5/16/2026, 3:41:32 AM
Decision
On May 14, 2026 the Court ruled in *Montgomery v. Caribe Transport II, LLC* that the Aviation Administration Authorization Act (FAAAA) does not preempt negligent-hiring claims when claim “concerns” motor-vehicle safety, because requiring a broker to exercise care in selecting a carrier concerns the trucks used to transport goods.
Background
The case stems from a Dec 7, 2017 crash on I-70 in Illinois. Shawn Montgomery’s stopped tractor-trailer was rear-ended by a truck driven by Yosniel Varela-Mojena for Caribe Transport II. Montgomery lost part of a leg and suffered disfigurement. He sued carrier, driver, and broker C.H. Robinson, claiming broker ignored a “conditional” FMCSA safety rating flagging safety problems.
Timeline
Dec 7, 2017 – crash; 2019-2024 – suit dismissed under FAAAA preemption; Jan 2025 – Seventh Circuit affirmed, creating a split with the Sixth and Ninth Circuits; May 14, 2026 – Supreme Court reversed.
Impact
The ruling opens a path for negligence suits against brokers that hire carriers with safety problems. Observers expect higher litigation risk, rising insurance costs, and stricter carrier-vetting. The Court confirmed the preemption provision bars state regulation of broker pricing, routes, and services, preserving the FAAAA’s economic-deregulation purpose.
Responses
Court noted the safety exception “saves only a subset of preempted claims: those concerning motor-vehicle safety.” C.H. Robinson expressed disappointment, reaffirming its safety-first policy and cooperation with regulators. Truck Safety Coalition called the decision “a massive win for truck safety.” Transportation Intermediaries Association warned divergent state standards could raise supply-chain costs. Justices Kavanaugh and Alito cautioned the ruling may raise litigation and insurance costs, urging Congress to clarify the statute.
Conflicts
Before the Supreme Court, the Seventh and Eleventh Circuits held that the FAAAA barred negligent-hiring claims, while the Sixth and Ninth Circuits allowed them. The Court resolved the split but highlighted an unexplained structural anomaly in the statute’s intrastate-broker preemption clause.
Quotes
- “A claim that one company negligently hired another to transport goods is not preempted by the FAAAA because States retain authority to regulate safety ‘with respect to motor vehicles’ under the Act.” — Justice Amy Coney Barrett
- “This is a massive win for truck safety.” — Zach Cahalan, Truck Safety Coalition
- “Importantly, the Court’s decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents.” — Justice Brett Kavanaugh and Justice Samuel Alito
- “Our hearts continue to go out to the victims of truck accidents. Safety is foundational to who we are.” — Dorothy Capers, chief legal officer, C.H. Robinson
Next Steps
The case is remanded to the Seventh Circuit for further proceedings. Freight brokers are expected to tighten carrier-selection documentation, and Congress may consider amendments to clarify the FAAAA safety carve-out.
