Supreme Court holds brokers liable

The U.S. Supreme Court on May 14 unanimously cleared the way for injured motorists to sue freight brokers under state negligent-hiring law when the brokers place freight with unsafe trucking companies. The 9-0 ruling in *Montgomery v. Caribe Transport II, LLC* said the Federal Aviation Administration Authorization Act does not block those claims because the law preserves state safety authority “with respect to motor vehicles.” Shawn Montgomery, an Illinois truck driver, brought the case after a 2017 crash in which a tractor-trailer driven by Yosniel Varela-Mojena hit Montgomery’s parked truck on the shoulder of an Illinois highway, causing severe and permanent injuries. Montgomery alleged that C.H. Robinson Worldwide, the freight broker that arranged the shipment of plastic pots, negligently hired Caribe Transport despite warning signs in the carrier’s safety record. (supremecourt.gov) The decision is important because brokers had argued that federal law broadly preempted state tort claims tied to their services. The court rejected that position in this case and sent Montgomery’s claim forward. ### What exactly did the justices decide about broker liability? The Supreme Court said on May 14 that even if the FAAAA would otherwise preempt Montgomery’s claim, the statute’s safety exception saves it. (supremecourt.gov) The opinion said states retain authority to regulate safety through common-law duties, including negligent-hiring standards, when those claims relate to motor vehicles. The justices framed the dispute around one phrase in the statute: whether negligent-hiring claims of this kind are “with respect to motor vehicles.” The court answered yes, allowing the lawsuit against C.H. (supremecourt.gov) Robinson to continue. ### How did this case get to the Supreme Court? The Seventh Circuit ruled on January 3, 2025, that Montgomery’s negligent-hiring claim was barred under circuit precedent, affirming a district court judgment for C.H. (supremecourt.gov) Robinson on that issue. The appeals court described Robinson as the broker that coordinated the shipment and said Caribe and the driver were independent contractors. The Supreme Court granted review to resolve whether the FAAAA’s safety exception permits negligent-hiring claims against brokers. In its opinion, the court said lower courts had split over that question. ### Who are the parties at the center of the ruling? Shawn Montgomery is the plaintiff whose truck was struck in Illinois in 2017. Yosniel Varela-Mojena was driving for Caribe Transport II, LLC, the motor carrier hauling the load at the time of the crash, according to the court record. (supremecourt.gov) C.H. Robinson Worldwide, based in Eden Prairie, Minnesota, is one of the largest logistics companies in the United States. (supremecourt.gov) The company reported $16.2 billion in 2025 total revenues and says it has more than 450,000 contract carriers on its platform. ### Why had the trucking industry fought this case so hard? (supremecourt.gov) C.H. Robinson, the Trump administration and trucking industry groups argued that letting these suits go forward would expose brokers to liability under varying state standards and make them responsible for screening carriers in ways they said belong to federal regulators. CBS News reported that the court rejected those arguments. (investor.chrobinson.com) Michael Leizerman, a lawyer for Montgomery, told CBS News the ruling could pressure brokers to screen out dangerous operators more aggressively. CBS also reported that its recent investigation documented thousands of so-called chameleon carriers — trucking companies that evade oversight by reappearing under new names — and found loads brokered by C.H. Robinson involving some of those operators. (cbsnews.com) ### What changes now for brokers and shippers? The immediate legal change is narrow but concrete: plaintiffs can keep bringing state negligent-hiring claims against brokers in cases like Montgomery’s, and brokers can no longer rely on the FAAAA as a complete shield in those suits. That raises the importance of carrier-selection records, safety-score checks and onboarding procedures in brokered freight. That conclusion is an inference from the court’s holding and from the arguments described by the parties and industry coverage. (cbsnews.com) The ruling does not decide that C.H. Robinson was negligent. It decides only that Montgomery’s claim is not barred by federal preemption and may proceed under state law. ### What happens next in Montgomery’s lawsuit? The case now returns to the lower court for further proceedings on Montgomery’s negligent-hiring claim against C.H. Robinson. The Supreme Court’s May 14 opinion resolved the preemption question, but the remaining factual dispute over what Robinson knew or should have known about Caribe Transport will be decided later in the litigation. (supremecourt.gov)