SCOTUS Issues Unanimous Ruling In Controversial Case

The Supreme Court of the United States has issued a major unanimous ruling that could significantly reshape the trucking, freight, and logistics industries nationwide, holding that freight brokers can be sued under state negligence laws for hiring unsafe trucking companies.

The 9-0 decision in *Montgomery v. Caribe Transport II, LLC* is being viewed as one of the most consequential transportation rulings in years and is expected to have far-reaching effects on freight operations, insurance costs, litigation exposure, and safety oversight across the trucking industry.

The case stemmed from a devastating 2017 crash on Interstate 70 in Illinois involving a semi-truck arranged by C.H. Robinson, one of the largest freight brokers in the country.

Plaintiff Shawn Montgomery suffered catastrophic injuries, including the loss of part of his leg, after a truck driver crashed into his parked tractor-trailer. Montgomery argued that C.H. Robinson should bear responsibility because the broker allegedly hired a carrier with a known history of safety issues and failed to properly vet the company before putting the truck on the road.

At the center of the legal battle was the Federal Aviation Administration Authorization Act of 1994, commonly referred to as the FAAAA. Freight brokers argued the law broadly preempts state-level lawsuits involving broker “prices, routes, or services,” effectively shielding brokers from negligence claims tied to trucking accidents.

Lower courts in the Seventh Circuit agreed with C.H. Robinson and ruled that Montgomery’s claims were barred under federal law.

But the Supreme Court unanimously reversed that decision in an opinion authored by Amy Coney Barrett.

The Court concluded that the FAAAA contains what is known as a “safety exception,” allowing states to continue enforcing laws connected to motor vehicle safety. Barrett wrote that negligent hiring claims against freight brokers directly “concern” motor vehicles because brokers play a critical role in choosing the trucking companies operating on public roads.

In practical terms, the decision means freight brokers can no longer automatically invoke federal preemption to avoid lawsuits involving crashes caused by carriers they selected. Plaintiffs may now pursue claims arguing brokers negligently hired trucking companies with unsafe drivers, poor inspection histories, or repeated safety violations.

The trucking and logistics industries are already warning that the ruling could dramatically increase legal exposure and operational costs. Industry groups argued during the case that opening brokers to negligence lawsuits could trigger a surge in litigation, raise insurance premiums, and force brokers to spend far more time and resources investigating carriers before assigning loads.

Some industry leaders fear the ruling could ultimately slow freight movement nationwide and increase shipping costs that may eventually be passed along to consumers through higher prices on goods and services.

Brett Kavanaugh acknowledged those concerns in a concurring opinion, describing the case as “close” and recognizing that the ruling could create substantial economic ripple effects throughout the freight sector. Nevertheless, Kavanaugh agreed that public safety considerations outweighed the transportation industry’s arguments for broad immunity.

The ruling is expected to force many freight brokers to overhaul their internal vetting and compliance systems. Transportation attorneys say brokers will likely begin conducting more aggressive background reviews on carriers, closely monitoring Federal Motor Carrier Safety Administration safety scores, and keeping extensive documentation explaining why certain carriers were selected for shipments.

The Supreme Court’s decision also resolves a longstanding split among federal appeals courts. Prior to the ruling, the Ninth and Sixth Circuits allowed these negligence claims to proceed, while the Seventh Circuit blocked them under federal preemption rules. The Court’s unanimous ruling now creates a nationwide legal standard.

Legal analysts say the decision could trigger a major increase in lawsuits following catastrophic trucking accidents. Instead of targeting only truck drivers and trucking companies, plaintiffs’ attorneys are now expected to aggressively pursue freight brokers as additional defendants, particularly when accidents involve carriers with troubling safety records or repeated regulatory violations.

For the freight industry, the ruling marks a major shift in legal liability — one that could permanently alter how brokers select carriers, manage risk, and conduct business moving forward.