The Supreme Court ruling on freight broker liability, explained
In May 2026 the Supreme Court took away the federal defense brokers had used against negligent-selection lawsuits. Here is what the Court decided, what it left open, and what it means for the brokers who book loads and the carriers who haul them.
Written by Rigo Diaz
The ruling in numbers
On May 14, 2026, the Supreme Court ruled unanimously in Montgomery v. Caribe Transport II that federal law does not shield brokers from state negligent-hiring claims. Freight broker liability for choosing an unsafe carrier is now decided under state law, case by case.
In some federal circuits, a broker sued over a carrier's crash could end the case early by arguing that federal law preempted the claim. That argument is gone. What replaces it is an older question: did the broker act reasonably when it chose the carrier?
I spent more than six years in risk management before I founded Simplex, and I have led the company for more than 25 years since. This ruling moves risk around the whole freight chain, from the broker's desk to the carrier's safety record. Here is what the Court actually decided, and what I would do about it on either side of the load.
The full briefing, read aloud
8 chapters. Select one to jump to it.
Generated with AI text-to-speech from this article's key insights, in order, rather than reading it word for word. Chapter times come from a transcript of the audio. The article itself was written and reviewed by Rigo Diaz.
Key takeaways
Negligent-selection claims can go forward
The Federal Aviation Administration Authorization Act (FAAAA) does not preempt a state claim that a broker negligently hired an unsafe motor carrier, because its safety exception saves it.
The Court did not find the broker negligent
It reversed the Seventh Circuit and sent the case back. The plaintiff still has to prove negligence under state law.
There is still no federal vetting standard
Federal broker rules are mostly financial. Justice Kavanaugh noted that FMCSA requires brokers to use a registered carrier but sets no other safety standard for choosing one.
The case turned on a public safety rating
The claim rested on the carrier's Conditional rating, which anyone can see on FMCSA's free SAFER Company Snapshot.
Congress has a bill, but it has not moved
H.R. 5337 would create a safe harbor for brokers that verify a carrier before shipment. Its last action was a subcommittee referral in September 2025.
In this articleContents
What did the Supreme Court decide about freight broker liability?
The Court held that federal law does not preempt a state negligent-hiring claim against a broker that selects an unsafe motor carrier. Justice Barrett wrote for all nine justices.
Shawn Montgomery's tractor-trailer was stopped on the side of the road in Illinois when a truck hauling for Caribe Transport II veered off course and struck it. His leg had to be amputated. C.H. Robinson had brokered the load, and Montgomery alleged it knew, or should have known, from Caribe's Conditional safety rating that hiring it was reasonably likely to cause crashes.
What is the FAAAA safety exception?
Under 49 U.S.C. 14501(c), states may not enforce laws related to the price, route, or service of a motor carrier or broker. But that rule "shall not restrict the safety regulatory authority of a State with respect to motor vehicles."
The Court read "with respect to" as "concerns." Requiring a broker to use ordinary care in selecting a carrier concerns motor vehicles, most obviously the trucks that will haul the goods, so the claim survives. State laws on prices, routes, and services with no link to safety stay preempted.
| Court of appeals | Case | Negligent-selection claims |
|---|---|---|
| Seventh Circuit | Ye v. GlobalTranz (2023) | Preempted |
| Eleventh Circuit | Aspen v. Landstar Ranger (2023) | Preempted |
| Sixth Circuit | Cox v. Total Quality Logistics (2025) | Allowed |
| Ninth Circuit | Miller v. C.H. Robinson (2020) | Allowed |
What did the ruling not decide?
The Court did not find C.H. Robinson negligent. It reversed the Seventh Circuit and remanded the case, and its judgment issued on June 15, 2026. Montgomery now has to prove his claim in the lower courts.
- No federal standard of care. The duty comes from each state's negligence law, so what counts as reasonable can differ by state.
- No ruling on vicarious liability. The Seventh Circuit had separately held that Caribe was an independent contractor, not C.H. Robinson's agent. The Supreme Court took only the negligent-hiring question.
- Intrastate loads left open. Section 14501(b), which covers brokers' intrastate services, has no safety exception. The Court called the difference a mystery and did not resolve it.
Justice Kavanaugh, joined by Justice Alito, wrote that the ruling "should not be read to mean that brokers will routinely be subject to state tort liability." Brokers that act reasonably and use reputable carriers should be able to defend these suits. He also warned that litigation and insurance costs can be significant even when a broker wins.
What does the ruling mean for freight brokers?
Carrier selection is now a safety decision that a state court can review, and your record of how you chose the carrier is your defense.
Federal rules on brokers are mostly financial. A broker needs FMCSA registration and a $75,000 surety bond or trust fund, and Justice Kavanaugh noted that FMCSA requires brokers to use a registered carrier but imposes no other safety standard on broker hiring. Meeting those rules does not answer the question a negligent-selection claim asks.
My advice is to treat vetting like underwriting. Write down your criteria, check them when you tender the load, not only at onboarding, and keep the record. Even the plaintiff's lawyer told the Court that a broker "asking the hard questions of the carrier" should not have a problem.
What does broker liability mean for carriers?
Your public safety record is now part of every broker's legal risk, so expect it to be checked harder before you get a load. In this case, the entire claim was built on one public fact: the carrier's Conditional rating.
FMCSA defines a Conditional rating as one where a carrier does not have adequate safety management controls in place. Anyone can see it for free on FMCSA's SAFER Company Snapshot, along with your out-of-service summary and crash information. DAT reported in August 2026 that brokers' vetting standards have changed, that authority age matters more than it used to, and that carriers with newer authorities can be shut out of loads until they build a track record.
Step 1: See what a broker sees
Pull your own Company Snapshot and read it the way a broker's compliance team would: rating, out-of-service rates, crashes.
Step 2: Correct data that is wrong
Request a review of inaccurate inspection or crash data through FMCSA's DataQs system. Our guide to CSA scores and truck insurance covers what outsiders can see and how to fix it.
Step 3: Get a Conditional rating changed
Under 49 CFR 385.17, a carrier that has corrected its deficiencies can ask FMCSA for a rating change at any time. Our DOT safety rating guide explains the process step by step.
Step 4: Keep the paperwork brokers ask for current
Keep driver files complete and insurance filings current, so nothing on your record gives a broker a reason to pass. Start with our driver qualification file checklist, or have our team manage your driver qualification files.
Could Congress change the rules on broker liability?
It could, and a bill is pending, but as of September 2026 it has not moved. Justice Kavanaugh noted that brokers may ask Congress and the President to change federal law.
The Motor Carrier Safety Selection Standard Act (H.R. 5337), introduced on September 11, 2025, would treat a broker or shipper as reasonable and prudent if, within 45 days before the shipment, it verifies that the carrier:
- Is registered with FMCSA as a motor carrier
- Has at least the minimum insurance required by federal and state law
- Has been confirmed by FMCSA as meeting its safety standards to operate
The bill would also make DOT rewrite its safety fitness methodology within a year. Its last recorded action was a referral to the House Subcommittee on Highways and Transit on September 12, 2025, and the FAAAA's safety exception reads the same today as it did on the day of the ruling.
How Simplex helps carriers show brokers a clean record
Brokers are now looking harder at the same records underwriters look at. We work on those records, and we place the insurance behind them.
The records behind your rating
Our DOT safety compliance team works on driver qualification files, drug and alcohol testing, ELD and hours of service, and audit support.
Audits and rating upgrades
Our audit guidance and support walks you through a compliance review and helps you maintain a Satisfactory rating.
Insurance placed by the same team
As a broker, we quote and place commercial truck insurance, from liability to cargo and physical damage, with filings and certificates handled in-house.
Frequently asked questions
Can a freight broker be held liable for a truck accident?+
What is the FAAAA safety exception?+
Did the Supreme Court find C.H. Robinson negligent?+
Is there a federal standard for how brokers vet carriers?+
Does the ruling apply to loads within one state?+
Where this information comes from
The ruling and the law below come from the Supreme Court, the U.S. Code, Congress, and FMCSA's own systems, checked on September 24, 2026. This article is general information, not legal advice.
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1
Supreme Court — Montgomery v. Caribe Transport II, LLC, 608 U.S. 219 (2026)
The facts, the holding, the circuit split, and Justice Kavanaugh's concurrence on broker regulation and costs.
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2
Supreme Court — Docket No. 24-1238
Decided May 14, 2026, reversed and remanded; judgment issued June 15, 2026; the Seventh Circuit opinion on vicarious liability.
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3
U.S. Code — 49 U.S.C. 14501
The FAAAA preemption provision and its safety exception, as in effect on September 23, 2026.
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4
GovInfo — H.R. 5337, Motor Carrier Safety Selection Standard Act
The proposed 45-day carrier verification safe harbor, and its referral to subcommittee.
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5
eCFR — 49 CFR 385.3
FMCSA's definitions of Satisfactory, Conditional, and Unsatisfactory safety ratings.
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6
eCFR — 49 CFR 387.307
The $75,000 broker surety bond or trust fund.
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7
FMCSA SAFER — Company Snapshot
The free public record of a carrier's safety rating, out-of-service summary, and crashes.
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8
DAT — A capacity-driven recovery looks different than everyone expected (Aug. 3, 2026)
Tighter broker vetting standards and their effect on carriers with newer authorities.
Written by
Rigo Diaz
Founder & CEO, Simplex Group
Founder and CEO of Simplex Group, with more than 25 years leading the company and helping trucking entrepreneurs navigate compliance, insurance, and the day-to-day demands of running a carrier. Before founding Simplex, he spent more than six years in risk management, experience that continues to shape how he approaches insurance, compliance, and carrier risk today.
Published · Updated
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Your safety record is now the first thing a broker checks
The Court did not make brokers liable for every crash. It made the carrier-selection decision matter, and that decision starts with your public record.
If you want to know what a broker sees when it looks you up, and how to improve it, talk to our team.