On May 14, 2026, the United States Supreme Court issued a unanimous decision in Montgomery v. Caribe Transport II, LLC, altering the liability landscape for freight brokers nationwide. In an opinion authored by Justice Amy Coney Barrett, the Court held that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state-law negligent hiring or negligent selection claims against freight brokers.
The case arose from a 2017 highway accident in Illinois where Shawn Montgomery suffered severe injuries when a tractor-trailer struck his stopped vehicle. The load was arranged by a major freight broker that contracted with a motor carrier holding a “conditional” safety rating from federal regulators. This rating cited deficiencies in driver qualifications, hours of service, and crash indicators. Montgomery alleged that the broker knew or should have known of these safety issues and failed to exercise ordinary care in their carrier selection.
Prior to this ruling, a circuit split existed regarding whether the FAAAA’s preemption provision shielded brokers from such claims. The Supreme Court resolved the issue by determining that negligent-hiring claims fall within the FAAAA’s safety exception, which preserves a state's authority to regulate safety with respect to motor vehicles. The Court reasoned that requiring brokers to exercise reasonable care when selecting carriers directly concerns the trucks operating on public highways.
This decision removes a key federal preemption defense previously available in certain jurisdictions. It exposes freight brokers to potential state tort liability when an accident involves a carrier they selected.
The Montgomery ruling has immediate implications for your brokerage operations:
You can now face negligent selection claims in any state. Juries will evaluate whether you exercised reasonable care when selecting motor carriers for your shipments.
Courts and plaintiffs’ attorneys will examine your carrier vetting processes, documentation, and ongoing monitoring. A “conditional” safety rating or other red flags known at the time of selection can become a liability.
Insurers will place increased focus on carrier selection protocols. This may lead to greater emphasis on policy warranties regarding due diligence and potential adjustments to overall coverage limits.
Stronger carrier selection practices will improve overall highway safety while favoring compliant carriers. Defensible programs give you a distinct advantage in risk management, insurance negotiations, and customer relationships.
The law does not demand perfection. It demands reasonable care supported by consistent, documented processes. A robust carrier qualification policy is your strongest defense against heightened legal scrutiny.
Develop a clear, written policy and update it annually. Make your policy risk-tiered by applying stricter standards for high-risk shipments like hazmat, high-value, oversize, or long-haul loads. Apply this policy consistently and document any justified exceptions.
Use standardized checklists or software for every carrier and retain clear records. Verify active USDOT/MC authority and insurance through the FMCSA Licensing and Insurance system. Review safety ratings carefully. Avoid carriers with an "Unsatisfactory" rating and closely scrutinize those labeled "Conditional." Analyze FMCSA SMS BASIC scores, crash histories, and inspection data, documenting how you resolve any red flags.
A large majority of motor carriers are unrated because they have not accumulated enough inspections or undergone a full compliance review. Post-Montgomery, unrated status is a yellow or red flag requiring heightened scrutiny. Classify unrated and new-entrant carriers as higher-risk. Conduct enhanced due diligence on their insurance strength, business history, and equipment. Require documented management approval before using them and consider limiting them to lower-risk loads.
Established technology providers significantly strengthen your defensibility by offering real-time data, fraud alerts, and audit trails. Consider integrating platforms like Carrier411, Highway, RMIS, Carrier Assure, or Verified Carrier alongside direct FMCSA checks. Document which tools you use, the dates of review, and any follow-up actions taken based on platform data.
Approval is not a one-time event. Regularly train your operations and sales teams on your written procedures. Perform periodic internal audits of carrier selection files to ensure proper documentation. Monitor repeat carriers for ongoing performance to protect your brokerage from negligent retention risks. Utilize automated tools that flag when an approved carrier’s status changes so you can take immediate action.
Use robust broker-carrier agreements with clear safety representations and insurance requirements. Carefully review your insurance policies for requirements related to carrier selection, due diligence, or safety protocols. Non-compliance could jeopardize your coverage. Discuss your contingent auto/truck broker liability and errors and omissions/professional liability coverage with your insurance advisor to ensure you have adequate limits.
While the Montgomery decision increases potential liability, it also provides an opportunity to differentiate your brokerage through excellence in safety and risk management. Brokers who ask hard questions, follow their policies, and document their diligence help position themselves to defend against claims.
Start by updating your written policy within the next 30 to 45 days and auditing a sample of recent carrier selections. By aligning your compliance, training, and insurance strategies, you can help protect your business while contributing to safer roads for everyone.
The Montgomery ruling has raised the stakes for freight brokers — and Brown & Brown is here to help you respond with confidence. We understand that navigating these legal shifts can feel challenging. We are here to support you with practical guidance, coverage analysis, and risk management tools tailored to your needs. Visit our Transportation Practice page to learn how we support transportation and logistics businesses like yours.
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Adam Green leads the logistics team at Brown & Brown, drawing on over 17 years of domestic transportation and logistics experience to deliver risk management knowledge, strategic consulting, and exceptional customer service. A hands-on leader with a proven track record, he previously led the domestic logistics team at a national brokerage before joining Brown & Brown to help customers achieve growth.