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Supreme Court Ruling Expands Broker Liability for Carrier Safety Decisions

Freight brokers face new legal exposure following a unanimous Supreme Court decision in May that allows negligent hiring and carrier-selection claims under state law. The ruling in Caribe Transport II, LLC closed a door that courts had kept open since 1994, when many had interpreted the Federal Aviation Administration Act to shield brokers from such lawsuits. Brokers can no longer assume safety responsibility rests solely with motor carriers. The decision does not impose strict liability or change underlying carrier safety requirements, but brokers' carrier-selection processes now face heightened scrutiny following accidents. Documentation of due diligence becomes critical legal defense. Standard compliance checks—current authority, active insurance and acceptable FMCSA ratings—may no longer constitute adequate vetting. Brokers increasingly must identify carriers operating documented safety management programs, such as video telematics systems, that demonstrate active risk identification and mitigation. A provable safety culture now differentiates carrier options and strengthens broker defensibility.