The Supreme Court Just Told Every Freight Broker That They Can Be Sued

In a unanimous 9-0 decision in Montgomery v. Caribe Transport II, LLC, the Supreme Court ruled this morning that state negligent-hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act. Justice Amy Coney Barrett’s opinion held that the FAAAA’s safety exception preserves state authority to require brokers to exercise ordinary care when selecting carriers. The Seventh Circuit is reversed, and the preemption shield brokers have leaned on since Ye v. GlobalTranz is gone. Roughly 28,000 U.S. brokers — including C.H. Robinson, the named defendant — are now exposed to state tort liability in every jurisdiction where they arrange transportation. Justice Kavanaugh, joined by Alito, concurred and warned that without this ruling, brokers would operate in a “black hole with no meaningful safety-related regulation.” The first wave of post-Montgomery suits will hit dockets within weeks. Document your carrier vetting. Check the FMCSA data. Or answer for it.