Broker liability
Broker Liability After Montgomery: What "Ordinary Care" Now Requires
By The Draylo Team · July 10, 2026
The short answer
In Montgomery v. Caribe Transport II, LLC (decided May 14, 2026), the U.S. Supreme Court ruled 9-0 that state-law negligent-selection claims against freight brokers are not preempted by the FAAAA — so a broker can be sued if a carrier it chose causes a crash. The standard is ordinary negligence: did the broker act reasonably in selecting the carrier? The Court set no checklist, so the practical defense is a documented, systematic vetting process you can show a court after the fact.
The short answer
On May 14, 2026, the U.S. Supreme Court held in Montgomery v. Caribe Transport II, LLC (No. 24-1238) — unanimously, 9-0 — that a state-law claim accusing a freight broker of negligently hiring a carrier is not preempted by federal law. In plain terms: if a broker selects a carrier that then causes a crash, the broker can be sued under ordinary state negligence law for that selection. The question a court will ask is whether the broker exercised "ordinary care" in choosing the carrier.
Crucially, the Court did not hand brokers a checklist. It applied the ordinary-negligence standard — was the broker's conduct reasonable under the circumstances? — and left the specifics to be worked out case by case. That's why the practical takeaway isn't "do these five things"; it's "be able to show, with a contemporaneous record, that you vetted the carrier reasonably."
What the Court actually held
The dispute was about federal preemption. The Federal Aviation Administration Authorization Act (FAAAA), 49 U.S.C. § 14501(c)(1), bars states from enforcing laws "related to a price, route, or service" of a broker. Brokers had long argued this preempted negligent-selection suits. But the statute also has a safety exception, § 14501(c)(2)(A), preserving "the safety regulatory authority of a State with respect to motor vehicles."
Writing for a unanimous Court, Justice Barrett held the negligent-hiring claim falls within that safety exception. The opinion's key line: "Requiring C.H. Robinson to exercise ordinary care in selecting a carrier therefore 'concerns' motor vehicles — most obviously, the trucks that will transport the goods. So Montgomery's negligent-hiring claim falls within the FAAAA's safety exception, which saves it from preemption." The Court also noted that "common-law duties and standards of care form part of a State's authority to regulate safety" — so the duty comes from ordinary state tort law, not a new federal rule.
The syllabus states the holding directly: "A claim that one company negligently hired another to transport goods is not preempted by the FAAAA because States retain authority to regulate safety 'with respect to motor vehicles' under the Act."
It does NOT make you an insurer of every load
This is the part brokers most often get wrong in a panic. Montgomery did not make brokers strictly liable for every accident. Justice Kavanaugh, concurring (joined by Justice Alito), framed the practical reality: the standard is ordinary negligence, and a broker who acts reasonably and selects a reputable carrier should be able to defend these suits. (Kavanaugh did note the case was "closer than the Court's opinion perhaps might suggest" — but filed no dissent, so the 9-0 holding stands.)
In other words: the exposure is real, but it is fault-based. The plaintiff still has to prove the broker acted unreasonably in selecting the carrier and that the failure contributed to the loss. Reasonable, documented vetting is a defense — not a guarantee, but the difference between a case you can fight and a settlement you can't avoid.
This didn't come out of nowhere
Montgomery nationalized a reading that lower courts had been moving toward. In Miller v. C.H. Robinson Worldwide, Inc., 976 F.3d 1016 (9th Cir. 2020), cert. denied, 141 S. Ct. 2800 (2021), the Ninth Circuit held that a negligent-selection claim, while "related to" broker services, was saved by the safety exception when it arose from a crash — the same ordinary-negligence framing the Supreme Court later adopted.
The momentum continued: in Cox v. Total Quality Logistics, Inc., No. 24-3599 (6th Cir. July 8, 2025), the Sixth Circuit reversed a dismissal and held that "where a negligent hiring claim against a broker substantively concerns motor vehicles and motor vehicle safety, that claim is within 'the safety regulatory authority of a State with respect to motor vehicles.'" Montgomery resolved the question for the whole country.
What a defensible vetting process looks like
Because the Court set no bright-line checklist, "defensible" means reasonable and, above all, documented. The strongest theme across the post-Montgomery legal analysis is timing: you want to demonstrate reasonable care contemporaneously with the hiring, not reconstruct it years later from memory in a deposition. The carrier information you reviewed, the criteria you applied, and who made the decision are exactly what turn into exhibits.
The kinds of records that become evidence in a negligent-selection case include FMCSA safety and authority data, SAFER reports, inspection and out-of-service histories, safety ratings, and your carrier onboarding and approval documentation. A dated, tamper-evident record of what you saw and why you proceeded is far stronger than a general "we always check carefully."
- ›Verify operating authority and status against the live FMCSA record before you tender
- ›Check insurance — and remember a certificate proves coverage on its issue date, not necessarily today
- ›Apply consistent criteria, and have an exception protocol for carriers with adverse safety indicators
- ›Record the decision at the moment you make it — what you reviewed, the criteria, and who approved
- ›Keep monitoring: a carrier can go bad after you clear it, and one-time vetting is weaker evidence than ongoing diligence
Frequently asked questions
Can a freight broker be sued if a carrier it hired causes an accident?
Yes. In Montgomery v. Caribe Transport II, LLC (U.S. May 14, 2026), the Supreme Court ruled unanimously that state-law negligent-selection claims against freight brokers are not preempted by the FAAAA. A broker can be held liable if it failed to exercise ordinary care in selecting a carrier that then caused harm.
Can freight brokers be sued for carrier selection specifically — not just the crash?
Yes — carrier selection is the claim. A negligent-selection (negligent-hiring) suit alleges the broker's own conduct in choosing the carrier was unreasonable, separate from the carrier's driving. After Montgomery, that claim proceeds under state law nationwide; the plaintiff must prove the broker failed to exercise ordinary care in the selection and that the failure contributed to the harm.
What is the "ordinary care" standard for freight brokers?
It's ordinary negligence: whether the broker acted reasonably under the circumstances in selecting the carrier. The Supreme Court did not prescribe a specific checklist, so reasonableness is judged case by case — which is why a documented, systematic vetting process is the practical defense.
Does Montgomery make brokers liable for every accident?
No. The standard is fault-based, not strict liability. A plaintiff must still prove the broker acted unreasonably in selecting the carrier and that the failure contributed to the loss. Justice Kavanaugh's concurrence noted that brokers who act reasonably and select reputable carriers should be able to defend these suits.
What records should a broker keep to defend a negligent-selection claim?
Contemporaneous documentation of the vetting: the FMCSA authority and safety data reviewed, insurance verified, the criteria applied, and who approved the carrier — captured at the time of the decision, not reconstructed later. Ongoing monitoring for material changes strengthens the record.
What is the citation for the Montgomery broker-liability case?
Montgomery v. Caribe Transport II, LLC, No. 24-1238 (U.S. May 14, 2026), decided 9-0, opinion by Justice Barrett, with Justice Kavanaugh concurring (joined by Justice Alito). The holding rests on the FAAAA safety exception, 49 U.S.C. § 14501(c)(2)(A).
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