From the Kansas Motor Carriers Assn newsletter, this case is going to have wide reaching implications on both brokers and carriers. You can view the entire newsletter here if desired (HERE).
In a year of change, May 14, 2026 delivered another big shift for the transportation industry when the Supreme Court issued its ruling in Montgomery v. Caribe Transport II, LLC, et al.
In this unanimous 9-0 decision, the Court ruled that freight brokers may be sued under state negligence laws for allegedly hiring unsafe motor carriers. Until this ruling, brokers in many jurisdictions could invoke the Federal Aviation Administration Authorization Act’s (FAAAA) to have such claims dismissed before they reached a jury.
Now, a negligent-hiring claim against a broker fall within the FAAAA’s safety exception - meaning the federal law no longer shields brokers from these lawsuits. Brokers must exercise “ordinary care” in selecting a carrier.
Experts across legal, insurance, and transportation say it is too soon to understand exactly how this will impact the transportation landscape. This is what we know less than a week out:
“Ordinary Care”
A lot of questions are swirling because of this ruling. What standard will brokers be held to, and what will constitute “ordinary care” in the eyes of the court? Then what will carriers be measured against when a broker makes a vetting decision?
Brokers will be expected to review, at minimum, Out of Service rates, crash histories, safety ratings (satisfactory, conditional, or unsatisfactory), CSA scores, authority age, and any patterns of non-compliance regarding driver qualifications and Hours of Service (HOS). For carriers, this is the lens through which a broker will evaluate you.
If a broker is ever involved in litigation, expect this information to be central to the case.
Brokers
Brokers — even small brokers — should reassess their insurance needs. We recommend reviewing your policies to ensure you are carrying contingent liability insurance. This may mean working with an additional broker depending on what coverages your current broker offers.
Many risk compliance and insurance firms offer tools that automate carrier vetting — pulling FMCSA safety data, CSA scores, insurance status, and authority age in real time.
These are helpful tools, but are likely to be part of the solution. Document what the tool showed you, when you checked it, and what decision you made. A vetting tool without documentation provides little protection if you end up in litigation.
Revisit your full vetting process to ensure it is consistent, written, and defensible. If a broker has no documented process, that absence is likely problematic.
Insurance companies and the risk managers who work within the industry are working to understand what this change means for liability.
Motor Carriers
For carriers, know that your safety record is now a critically important part of getting business. If you don’t already, start treating it as an asset. The stronger your safety practices are, the more attractive you will be to a broker.
As brokers move away from the pool of non-compliant carriers that have depressed freight rates, analysts across the industry suggest that carriers with strong safety records will ultimately benefit from higher rates and increased load volumes.
PS - Don’t forget out our safety services available to you! Contact us today to chat.
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