Supreme Court Rules 9-0 Freight Brokers Face State Negligent-Hiring Claims, Reversing Seventh Circuit
Updated
Updated · FreightWaves · May 14
Supreme Court Rules 9-0 Freight Brokers Face State Negligent-Hiring Claims, Reversing Seventh Circuit
12 articles · Updated · FreightWaves · May 14
A 9-0 Supreme Court ruling sent Shawn Montgomery’s case against C.H. Robinson back to lower court, allowing him to pursue a negligent-hiring claim over the 2017 Illinois crash that cost him a leg.
Justice Amy Coney Barrett said the FAAAA’s safety exception preserves state authority over claims "with respect to motor vehicles," and that requiring brokers to use ordinary care in choosing carriers concerns the trucks hauling the load.
The court rejected C.H. Robinson’s arguments that this reading would gut federal preemption, while Justice Brett Kavanaugh, joined by Samuel Alito, said the case was close but warned immunity would leave broker carrier-selection practices in a safety-regulation "black hole."
The decision overturns the Seventh Circuit and undercuts a key defense brokers have used since 2023, exposing carrier-vetting records and safety-screening practices to juries nationwide.
With brokers carrying a $75,000 surety bond rather than tort liability insurance, the ruling is expected to spur more negligent-hiring suits, tighter safety checks and higher insurance costs across freight and logistics.
Will the Supreme Court's broker ruling actually improve road safety, or just raise prices on everything we buy?
With brokers now facing 'nuclear verdicts,' is the freight industry sitting on an uninsured financial time bomb?
Supreme Court’s 2026 Montgomery Ruling Ends Federal Preemption, Exposes Freight Brokers to State Negligent Hiring Lawsuits
Overview
On May 14, 2026, the Supreme Court unanimously ruled that state negligent-hiring claims against freight brokers are not blocked by federal law, allowing these lawsuits to move forward in lower courts. This decision, based on the FAAAA’s safety exception, marks a major shift in liability for the freight brokerage industry. The Court clarified that federal deregulation was never meant to remove accountability for safety-related negligence. As a result, freight brokers now face greater responsibility and must show due diligence in their hiring practices, giving injured plaintiffs a new path to seek recovery when accidents occur.