Supreme Court Ruling Reshapes Freight Broker Liability: What the Industry Needs to Know
The trucking and logistics industry received a major legal wake-up call this week after the U.S. Supreme Court unanimously ruled that freight brokers can be sued for negligent carrier selection. The decision in Montgomery v. Caribe Transport II, LLC is already being described as one of the most consequential transportation rulings in years — and its impact could ripple across brokers, shippers, carriers, insurers, and third-party logistics providers alike. At the center of the case was a 2017 crash involving a truck arranged by brokerage giant C.H. Robinson. The injured driver alleged that the broker failed to properly vet the carrier involved in the accident. Lower courts had previously ruled that federal law shielded brokers from these types of state negligence claims. But the Supreme Court disagreed. The ruling effectively opens the door for freight brokers to face liability if they fail to exercise reasonable care when selecting carriers. What the ...