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Supreme Court Strips Broker Immunity in Negligent Hiring Cases

The Supreme Court dealt a significant blow to freight brokers on May 14, ruling that intermediaries cannot escape state negligent hiring lawsuits under federal preemption. The unanimous decision against C. Robinson Worldwide eliminates a critical legal defense the brokerage industry has relied upon.

Roughly 28,000 freight brokers facilitate approximately one-third of all U.S. shipments. Industry leaders acknowledge brokers retain other defensive options in such claims but warn the ruling will reshape hiring practices across the sector. Transportation Intermediaries Association officials predict the liability exposure will force smaller carriers from the market, not due to wrongdoing but purely from heightened legal risk. Legal experts note the decision is neither industry-ending nor entirely unexpected, as brokers can still mount defenses in negligent hiring claims under state law.