The U.S. Supreme Court has removed a defense freight brokers used to seek early dismissal of negligent hiring claims arising from trucking accidents. In Montgomery v. Caribe Transport II, LLC, the Court unanimously held that the Federal Aviation Administration Authorization Act’s safety exception allows a state-law negligent hiring claim against a freight broker to proceed.
The case arose from an Illinois crash involving a motor carrier selected by C.H. Robinson. The plaintiff alleged that the broker negligently hired Caribe Transport despite problems in the carrier’s safety record. Lower courts found the claim preempted by federal law, but the Supreme Court reversed.
For claims professionals, the ruling broadens the investigation when a freight broker is involved in a serious trucking loss. Adjusters may need to examine FMCSA safety information, prior crashes and out-of-service violations, operating authority, insurance verification, onboarding records and communications surrounding the carrier’s selection.
The ruling does not make freight brokers automatically liable for crashes involving carriers they select. Negligence still depends on the facts and applicable state law. Broker records showing what safety information was reviewed, what was known when the carrier was selected and why the carrier was approved could play a larger role in evaluating and defending these claims.
