Supreme Court Decision Increases Potential Liability of Freight Brokers in Trucking Accidents

In a landmark 9-0 decision delivered on May 14, the U.S. Supreme Court ruled in Montgomery v. Caribe Transport II, LLC that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state-law negligent-hiring claims against freight transportation brokers.

This case is a major decision for the trucking and logistics industry because it increases the potential liability of freight brokers when crashes happen.

The case involved a serious tractor-trailer crash in Illinois. The injured driver argued that transportation broker C.H. Robinson Worldwide, Inc. should be held responsible because it hired an unsafe trucking company, Caribe Transport II, LLC, to move freight. Montgomery claimed the broker either knew or should have known the carrier had poor safety records.

The legal issue centered on the Federal Aviation Administration Authorization Act (FAAAA), a federal law that generally prevents states from regulating trucking prices, routes, and services. Brokers argued that this law protected them from state-law negligence lawsuits. The Supreme Court disagreed.

The Court ruled that:

• Freight brokers can still be sued under state negligence laws for hiring unsafe trucking companies.
• Federal trucking deregulation laws do not automatically shield brokers from liability.
• States still have the power to enforce safety-related rules involving motor vehicles.

What this essentially means is that if a broker hires a trucking company with a bad safety history and that choice contributes to a crash, the broker may potentially be held liable in court.

What This Means for Trucking Companies

Brokers Face Greater Legal Exposure

Transportation brokers can no longer rely as heavily on federal preemption arguments to dismiss negligent hiring lawsuits early. The broker could face direct liability after a serious accident if they hire:

• A carrier with poor safety scores.
• Repeated violations.
• Out-of-service orders.
• Crash histories
• Unsafe drivers

Carrier Vetting Becomes Much More Important

Brokers will likely need stronger screening procedures, including reviewing:

• FMCSA safety ratings.
• CSA scores.
• Crash histories.
• Insurance coverage.
• Driver qualification practices.
• Hours-of-service compliance.
• Maintenance records.
• Prior safety violations.

Contact Us Today

There are often a lot of entities involved in transportation and trucking and parties need to be held accountable if their negligence caused a crash.

If you have been involved in a crash, get the help you need from a Columbia truck accident lawyer from Simmons Law Firm. Truck accidents are often severe in nature, with many injuries and damages involved. We will help you get full and fair compensation. To schedule a consultation, fill out the online form or call (803) 779-4600.

Source:

supremecourt.gov/opinions/25pdf/24-1238_1b7d.pdf