On May 14, 2026, the United States Supreme Court issued a unanimous decision in Montgomery v. Caribe Transport II, LLC (No. 24-1238) holding that the Federal Aviation…
On May 14, 2026, the United States Supreme Court issued a unanimous decision in Montgomery v. Caribe Transport II, LLC (No. 24-1238) holding that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state-law negligent selection claims against transportation brokers. The ruling marks a significant inflection point for the freight brokerage industry, which had broadly relied on FAAAA preemption as a defense to tort claims arising from carrier selection decisions. With that defense now foreclosed at the federal level, brokers face renewed and meaningful exposure to state-law tort liability for how they vet and engage motor carriers.
The practical consequence of Montgomery is that plaintiffs injured in motor-carrier accidents may once again pursue freight brokers directly under state negligent selection theories. Courts that had previously dismissed such claims on preemption grounds will now be required to evaluate them on the merits, including whether a broker exercised reasonable care in selecting, screening, and monitoring the motor carriers it engaged. This shift reopens a litigation avenue many brokers considered effectively closed and is likely to attract increased plaintiff interest, particularly in cases involving catastrophic injury or fatality.
Freight brokers should treat the decision as a prompt to review and strengthen their carrier-selection programs without delay. Vetting protocols should be examined to ensure they capture, at a minimum, federal operating authority, safety ratings, insurance coverage, and relevant safety performance data, and that this information is reviewed and documented before each engagement. Internal policies governing ongoing carrier monitoring, disqualification thresholds, and escalation procedures should be updated to reflect the heightened legal environment.
Contractual arrangements warrant equally close attention. Brokers should review agreements with motor carriers and shippers to confirm that indemnification, insurance, and risk-allocation provisions remain appropriately calibrated in light of expanded tort exposure. Where contracts are silent or outdated, prompt amendment is advisable. Brokers should also coordinate with their insurance brokers and counsel to confirm that current coverage responds to the categories of claims that Montgomery is likely to generate.
This alert is provided for general informational purposes only and does not constitute legal advice. Clients with questions about how the decision may affect their operations should seek tailored guidance from qualified counsel.