Montgomery v. Caribe: What the Supreme Court Ruling Means for Freight Brokers

On May 14, 2026, the U.S. Supreme Court decided Montgomery v. Caribe Transport II, LLC and changed the legal ground under every freight brokerage in the country. In a unanimous opinion written by Justice Barrett, the Court held that a state-law claim accusing a broker of negligently selecting an unsafe motor carrier is not preempted by the federal law that governs brokers' services (SCOTUSblog).

For years, brokers in some parts of the country could get these lawsuits dismissed early. That shield is gone. This guide explains the ruling in plain language and turns it into a practical checklist. It is not legal advice; talk to your attorney and insurance broker about your own exposure.

What the case was about

The case arose from a highway crash. The truck involved was operated by a carrier that held only a "conditional" FMCSA safety rating, with documented problems in driver qualification, hours of service, maintenance and crash rates (Crowell & Moring). The injured driver sued the broker that arranged the load, arguing it knew or should have known the carrier was unsafe.

The broker's defense was preemption. The Federal Aviation Administration Authorization Act (FAAAA) bars state laws "related to a price, route, or service" of a broker. Lower courts were split: the Seventh and Eleventh Circuits dismissed these claims, while the Sixth and Ninth Circuits let them go forward.

What the Supreme Court decided

The Court sided with the injured driver. The FAAAA contains a safety exception that preserves states' "safety regulatory authority … with respect to motor vehicles", and the Court held that a negligent-hiring claim against a broker falls within it (Faegre Drinker).

In practice, that means a plaintiff can now ask a jury whether your brokerage acted reasonably when it chose the carrier.

What the ruling did not decide

Several things are often overstated in trade coverage:

• It did not find the broker negligent. It only allowed the claim to be heard.
• It did not create a national vetting standard. What counts as "reasonable" will be argued case by case under each state's law.
• It did not end preemption. State rules about broker prices, routes and services with no connection to safety are still preempted.

Why your process is now your best defense

If a claim reaches a jury, the questions will be practical: What did you check? When? Did you check it the same way every time? Did you ignore a red flag because the rate was good?

A brokerage that can show a written policy, applied consistently, with a timestamped record for each load, is in a far stronger position than one that "usually checks SAFER."

A carrier-selection checklist after Montgomery

Use this as a starting point and adapt it with counsel:

1. Authority and age. Active operating authority, and a minimum time in business for your freight type.
2. Safety rating and scores. Your rule for "conditional" ratings, and for high BASIC percentiles in unsafe driving, HOS and vehicle maintenance. Write the rule down.
3. Insurance. Certificate received directly from the agent, with limits that meet your policy, checked for the right commodity and equipment.
4. Identity. Phone, email domain and FMCSA contact details match. Identity theft of real carriers' authority is common (see our fraud prevention checklist).
5. Driver-level checks where your contracts require them. Recent enforcement, such as English-proficiency out-of-service orders, happens at the driver level.
6. Exceptions are approved and logged. If a manager overrides a rule, the reason is recorded.
7. Records are kept per load, not per carrier: what was checked, by whom, and when.

What it means for your pricing

Stricter vetting shrinks the pool of carriers you can use on some lanes, especially in a tight market. Expect higher carrier costs on lanes where many of the cheapest options fail your policy, and price for it. A quote that only works with a carrier you shouldn't use is not a good quote. See how to price truckload freight and how to protect your margin.

Frequently asked questions

Does Montgomery v. Caribe make brokers liable for every accident?

No. It allows negligent-selection claims to be brought under state law. A plaintiff still has to prove the broker was negligent in choosing the carrier and that this caused the harm.

Is checking a carrier's FMCSA status enough?

There is no single legal standard. Most attorneys recommend a written policy that covers authority, safety data, insurance and identity, applied the same way on every load, with records kept.

Should brokers change their insurance?

Many brokers are reviewing contingent auto liability limits and terms after the ruling. Discuss your exposure and coverage with your insurance broker.

When was the decision issued?

The Supreme Court decided Montgomery v. Caribe Transport II, LLC (No. 24-1238) on May 14, 2026.