Montgomery v. Caribe Transport II, LLC – Decided May 14, 2026
In a 9-0 decision issued late last week, the United States Supreme Court held that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state law claims against freight brokers for negligent hiring of carriers. The decision means that brokers can be held liable under state law for failing to act with reasonable care in selecting carriers.
Background
Shawn Montgomery was seriously and permanently injured when his stopped vehicle was struck by a truck operated by Caribe Transport. Montgomery sued, arguing in relevant part that the broker of the shipment, C.H. Robinson Worldwide, was liable for negligently selecting Caribe as the carrier. Specifically, he alleged that C.H. Robinson failed to exercise reasonable care because at the time of hiring, Caribe had a poor safety rating from federal regulators, and the broker knew or should have known that choosing Caribe was reasonably likely to result in a crash causing injury to others.
The FAAAA
The preemption provision prohibits States from enacting or enforcing laws related to the price, route, or service of any motor carrier or broker with respect to the transportation of property. However, the safety exception preserves the authority of States to regulate safety with respect to motor vehicles.
Supreme Court Holding
The unanimous opinion held that under the safety exception, States have the authority to regulate safety with respect to motor vehicles on the road. The Court explained that because a claim of negligent carrier selection clearly concerns vehicles on the road (i.e., the trucks that will transport the goods), the States have regulatory authority over such claims. Therefore, the preemption provision of the FAAAA does not shield brokers from liability under state tort law claims of negligent hiring.
What This Means
With changes expected in the future, there will likely be additional cases alleging negligent hiring against brokers in light of the Supreme Court’s decision. Further guidance is expected to emerge as these actions work their way through the courts.
Brokers can be sued for state law tort claims. While we expect an initial wave of these lawsuits in the wake of the Supreme Court decision, brokers should not expect to routinely face state tort actions moving forward. In the event of a lawsuit, the court will likely be focused on whether the broker exercised reasonable care in selecting a carrier. The Court’s decision encourages brokers to engage in business only with safe and reliable motor carriers.
Brokers should exercise reasonable care in carrier selection. Because brokers are now at risk of state tort liability, they should take additional precautions as part of exercising reasonable care. This would include, for example, enacting policies that establish protocols for documenting the carrier selection process, which should involve reviewing carrier safety records (such as the data collected by the Federal Motor Carrier Safety Administration).
Brokers should expect to face additional costs for insurance coverage and litigation. Because brokers have not, until now, been subject to state law tort claims, many have not carried the excess liability coverage that would come into play should they face a disastrous jury verdict that exceeds the current policy limits of their liability coverage. Brokers should anticipate additional costs associated with higher premiums and potential litigation.
Contact Us
At Dvorak Law Group, we understand that changing laws and liability concerns can impact business operations, bottom lines, and reputations. Our skilled attorneys are available to discuss, advise, and assist brokers in complying with laws and regulations, minimizing liability exposure, and defending against litigation.
About Dvorak Law Group, LLC
Dvorak Law Group, LLC is a full-service business, estate and wealth transfer planning, and litigation law firm with offices in Omaha, Hastings, Sutton, and Columbus, Nebraska, and Sioux Falls, South Dakota. It serves individuals, businesses, non-profit organizations, and government entities in Nebraska, South Dakota, and throughout the country. To learn more about Dvorak Law Group, please visit www.dvoraklawgroup.com.
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