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Supreme Court Strips Federal Shield From Freight Brokers in Landmark 9-0 Ruling

The U.S. Supreme Court ruled unanimously in Montgomery v. Caribe Transport II, LLC on Thursday that federal law does not protect transportation brokers from state-level personal injury lawsuits stemming from carrier selection decisions. The decision exposes roughly 30,000 intermediaries across the industry to a fragmented legal landscape, where negligence standards vary across 50 states. Brokers now face potential liability when they arrange transportation with carriers that subsequently cause injury or damage. The ruling eliminates a key legal safeguard that had shielded the brokerage sector from direct accountability in carrier-related incidents. Industry participants must now navigate dramatically increased litigation exposure and reconsider risk management protocols. The decision marks a significant shift in regulatory liability for freight intermediaries.