by Jessica Ingram
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The U.S. Supreme Court issued a major ruling that could significantly impact the freight brokerage industry, unanimously siding against brokers in the high-profile Montgomery case. The decision allows negligent hiring claims against freight brokers to move forward under state law, meaning brokers may now face increased legal scrutiny when selecting carriers. At the center of the case was a lawsuit against freight broker C.H. Robinson after an injured driver alleged the company failed to properly vet a carrier involved in a serious crash. The Court ruled that the Federal Aviation Administration Authorization Act’s (F4A) safety exception applies in these cases, rejecting the long-standing argument that brokers were shielded by federal preemption.
The ruling is expected to have wide-reaching implications across logistics, potentially increasing insurance costs, tightening carrier vetting standards, and changing how brokers document carrier selection. Industry leaders warn the decision could create new liability exposure for brokers and shippers alike, while supporters argue it strengthens accountability and safety standards within trucking. As freight companies assess the fallout, many are expected to revisit compliance procedures and risk management strategies in response to this landmark legal shift.
Source Citation:
John Kingston, “SCOTUS rules against brokers in Montgomery case,” FreightWaves, May 14, 2026.
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