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Supreme Court Eliminates Long-Standing Legal Protection for Freight Brokers in Carrier Selection Cases

The Supreme Court has ended a decades-old legal shield that freight brokers used to defend against negligent-hiring claims. In a 9-0 decision in Montgomery v. Caribe Transport II, LLC, the justices ruled that state-law negligent-hiring claims are not preempted by the Federal Aviation Administration Authorization Act. The ruling resolves a split among federal circuit courts and removes a defense brokers routinely invoked to dismiss carrier-selection lawsuits before trial. The decision hinges on the FAAAA's safety exception, which preserves state regulatory authority over motor vehicle safety. Brokers can no longer rely on preemption arguments to avoid scrutiny of their carrier vetting practices. They must now demonstrate reasonable selection criteria supported by documentation and verifiable safety standards. Justice Brett Kavanaugh acknowledged potential insurance cost increases but noted that brokers selecting reputable carriers should successfully defend tort suits. The ruling fundamentally reshapes broker liability exposure nationwide.