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Post-Montgomery Ruling Exposes Brokers, Shippers to Carrier Selection Liability

The Supreme Court's May 14 decision in Montgomery v. Caribe Transport fundamentally altered liability exposure for freight intermediaries. Justice Amy Coney Barrett's majority opinion determined that the Federal Aviation Administration Authorization Act does not shield brokers from negligent carrier selection claims. The decision overturned a decade-long preemption defense that carriers and intermediaries had relied upon to dismiss cases before discovery. Justice Brett Kavanaugh filed a concurrence joined by Justice Samuel Alito.

The ruling extends liability exposure beyond licensed brokers to shippers, third-party logistics providers, and digital freight platforms that directly select carriers with access to public safety data. The case stemmed from a 2017 incident in Illinois where a Caribe Transport truck struck Shawn Montgomery's parked vehicle on a highway shoulder, injuring him. Caribe held a conditional safety rating at the time.

Industry stakeholders now grapple with distinguishing between compliance—the federal minimum standard—and risk assessment, creating new operational and legal standards for carrier vetting.