Supreme Court Rules Federal Law Does Not Block State Negligent-Hiring Claims Against Trucking Brokers

The U.S. Supreme Court issued a unanimous ruling on May 15, 2026 in the case Montgomery v. Caribe Transport II, LLC. The decision clarifies that the Federal Aviation Administration Authorization Act does not preempt state-law negligent-hiring claims against freight brokers.

The court determined that freight brokers can face state claims for negligent hiring when they select unsafe motor carriers. This reverses prior interpretations that had broadly shielded brokers from such liability under the federal law. The ruling applies to the regulation of the nation's $800 billion trucking industry.

Freight brokers arrange transportation between shippers and motor carriers. Under the new interpretation, brokers may be held responsible at the state level if they fail to exercise reasonable care in selecting carriers with poor safety records. The decision could lead to increased scrutiny of broker practices across multiple states.

Motor carriers with documented safety violations may face greater barriers to securing loads through brokers. Shippers and insurers are also expected to review how this affects liability allocation in the supply chain. The Federal Aviation Administration Authorization Act was previously interpreted by some courts to limit state regulation in the trucking sector to promote uniformity.

The Supreme Court ruling narrows that preemption specifically regarding negligent-hiring claims.