breaking

Supreme Court Ruling Could Expose Shippers to Liability, Industry Execs Warn

Two trucking industry leaders—Max Fuller, founder and former CEO of a carrier, and an executive appearing at the Wolfe Research transportation conference—warned Thursday that the Supreme Court's Montgomery decision on broker liability may extend liability exposure to shippers themselves, not just brokers and third-party logistics providers.

The unanimous ruling clarified that brokers fall under the "with respect to motor vehicles" language in the Federal Aviation Administration Authorization Act's (F4A) safety exception. This permits state-level legal action against brokers. Industry observers now question whether shippers could face similar exposure under the same provision.

Mixed federal court decisions have previously protected third-party logistics companies in some regions while leaving them exposed in others. The Montgomery decision settled the broker question but left shippers' status ambiguous.

If shippers face increased liability risk, Bozeman noted that companies will likely intensify their broker vetting procedures to mitigate exposure. The recent strengthening freight market has not diminished these emerging legal uncertainties.