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Supreme Court Ruling Eliminates Broker Immunity Defense, Raises Questions for Equipment Lessors

The Supreme Court's May 14, 2026 decision in Montgomery v. Caribe Transport II, LLC struck down a decade-old legal defense shielding freight brokers from negligent hiring claims. The ruling found that state-law requirements for brokers to exercise ordinary care in carrier selection are not preempted by federal law, as motor vehicle safety remains within state jurisdiction. Shawn Montgomery lost his leg in a 2017 incident involving a Caribe Transport vehicle. At the time of selection by Robinson, the largest freight broker in the country, Caribe held a conditional Federal Motor Carrier Safety Administration rating with documented deficiencies in driver qualification, hours of service, and vehicle maintenance. The decision prompted widespread industry client alerts emphasizing documentation of carrier vetting and formalized selection criteria. The ruling may have broader implications for equipment lessors, who place significant shares of commercial power units on roads under other operators' authority.