The Supreme Court ruled unanimously nine to zero on May 16, 2026 in Montgomery v. Caribe Transport II, LLC that state negligent-hiring claims against freight brokers are not preempted by the Federal Aviation Administration Authorization Act. The decision exposes approximately 28,000 freight brokers to liability for selecting dangerous carriers. Justice Amy Coney Barrett wrote the majority opinion reversing the Seventh Circuit.
Supreme Court ruling
- ▪The Supreme Court of the United States handed down its decision in Montgomery v. Caribe Transport II, LLC on May 16, 2026
- ▪The Supreme Court reversed the Seventh Circuit in Montgomery v. Caribe Transport II, LLC.
- ▪The Supreme Court ruled that a negligent-hiring claim against a freight broker is not preempted by the Federal Aviation Administration Authorization Act
- ▪Shawn Montgomery lost his leg when Yosniel Varela-Mojena veered off course in a Mack Truck hauling plastic pots through Illinois
- ▪Justice Amy Coney Barrett's opinion in Montgomery v. Caribe Transport II, LLC is eight pages long
- ▪Justice Amy Coney Barrett wrote the majority opinion in Montgomery v. Caribe Transport II, LLC.
- ▪Shawn Montgomery can now pursue his negligent-hiring claim against C.H. Robinson following the Supreme Court decision
- ▪The Supreme Court ruled unanimously nine to zero in Montgomery v. Caribe Transport II, LLC.
Federal preemption doctrine
- ▪The Supreme Court relied on dictionary definitions and its prior construction in Dan's City Used Cars, Inc. v. Pelkey (2013) to interpret the phrase with respect to as meaning concerns
- ▪The FAAAA's safety exception under 49 U.S.C. Section 14501(c)(2)(A) saves negligent-hiring claims against freight brokers from preemption.
- ▪The FAAAA safety exception preserves the safety regulatory authority of a State with respect to motor vehicles under Section 14501(c)(2)(A)
- ▪The FAAAA preempts state laws related to a price, route, or service of a motor carrier or broker with respect to the transportation of property under Section 14501(c)(1)
Kavanaugh concurrence
- ▪Justice Brett Kavanaugh filed a concurrence in Montgomery v. Caribe Transport II, LLC joined by Justice Samuel Alito
- ▪In 2022, approximately 500,000 reported truck accidents resulted in about 5,000 deaths and 114,000 injuries
- ▪Justice Brett Kavanaugh wrote that Montgomery v. Caribe Transport II, LLC was closer than the majority opinion suggested
- ▪The FAAAA mandates minimum insurance coverage for trucking companies under Section 13906(a)(1) but not for brokers under Section 13906(b)(2)(A)
Broker liability exposure
- ▪The Restatement (Second) of Torts, Section 411, imposes a duty of reasonable care in employing a contractor for work carrying a risk of physical harm
- ▪The preemption defense that freight brokers have been relying on since 2023, when the Seventh Circuit decided Ye v. GlobalTranz, is gone
Insurance coverage gaps
- ▪The broker surety bond under 49 U.S.C. Section 13906 is not liability insurance and does not cover tort claims.
- ▪The existing broker surety bond requirement under 49 U.S.C. Section 13906 is $75,000.
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