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Supreme Court Strips Freight Brokers of Federal Preemption Shield in 9-0 Ruling

The Supreme Court ruled 9-0 that freight brokers can be sued under state negligent hiring law, ending a federal preemption defense the industry used for years to block tort claims.

MAY 14, 2026 · WASHINGTON, ILLINOIS, USA · MONTGOMERY V. CARIBE TRANSPORT II, LLC

The Supreme Court held unanimously on May 14, 2026, that state-law negligent hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act's general preemption clause, because those claims fall within the statute's safety exception, which preserves state authority over motor vehicle safety [1]. The decision dismantles the primary defense freight brokers have deployed for years to defeat tort suits arising from trucking casualties [2]. Justice Amy Coney Barrett authored the opinion for the Court [1]. Justice Brett Kavanaugh filed a concurrence joined by Justice Samuel Alito, emphasizing that broker accountability for carrier selection is a matter of life and death [1].

The case, *Montgomery v. Caribe Transport II, LLC*, reached the Court on review of a Seventh Circuit decision that had ruled in favor of preemption [1]. The plaintiff, Shawn Montgomery, brought state negligence claims against a freight broker after a trucking incident, arguing the broker failed to exercise reasonable care in selecting the carrier [2]. The ruling resolves a circuit split that had divided federal courts for years on whether the FAAAA's safety exception covers negligent hiring claims against brokers, as distinct from direct safety regulations targeting carriers [1] [3].

The decision carries broad commercial consequences. Freight brokers arrange roughly one-third of all U.S. freight movement, and the industry had relied on federal preemption as a near-automatic barrier to state tort liability [2]. With that barrier removed, brokers face exposure to negligent hiring suits in every state, requiring courts to apply each state's common-law duty-of-care standards to carrier-vetting decisions [3]. The ruling is expected to accelerate changes in broker underwriting practices, carrier qualification protocols, and the allocation of liability risk in logistics contracts [2] [3].

Industry observers and legal analysts note that brokers will likely need to document carrier-vetting procedures with greater rigor, as that documentation will become central evidence in future negligence litigation [3]. Plaintiffs' counsel in pending trucking casualty cases can now revive or amend claims previously dismissed on preemption grounds [2]. Major brokers, including C.H. Robinson Worldwide, which had litigated preemption defenses in related cases, face immediate reassessment of litigation strategy and risk reserves [2]. The decision takes effect immediately, with no remand required on the preemption question [1].

References

[1]SCOTUSblog. (2026, May 15). Court rules freight brokers can face negligent hiring suits under state law. https://www.scotusblog.com/2026/05/court-rules-freight-brokers-can-face-negligent-hiring-suits-under-state-law/
[2]FreightWaves. (2026, May 14). The Supreme Court just told every freight broker that they can be sued. https://www.freightwaves.com/news/the-supreme-court-just-told-every-freight-broker-that-they-can-be-sued
[3]Adams and Reese. (2026, May 14). Supreme Court Ruling Reshapes Freight Broker Liability. https://www.adamsandreese.com/insights/scotus-reshapes-liability-for-negligence-claims-for-freight-industry

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