The U.S. Supreme Court’s decision in Montgomery v. Caribe Transport II, LLC is an important warning for the transportation industry. The case does not change how freight is moved. But it may change who gets sued, what evidence gets reviewed, and how risk is assigned after a serious trucking accident.
For years, freight brokers often argued that federal law protected them from state-law claims for negligent hiring or negligent selection of a motor carrier. In Montgomery, the Supreme Court held that these claims can move forward under state law because they fall within the safety exception of the Federal Aviation Administration Authorization Act.
The practical message is simple: Choosing a carrier is not just a business decision. It is also a safety decision.
Freight Brokers May Face More Lawsuits After Serious Crashes
After a serious trucking accident, lawsuits will likely focus on more than just the driver and motor carrier. Plaintiffs’ lawyers will now look closely at the freight broker’s role in selecting the carrier. Important questions may include:
* What information did the broker review before selecting the carrier?
* Did the carrier have safety problems, violations, or warning signs?
* Did the broker follow a written vetting process?
* Were safety checks documented?
* Did the broker ignore red flags?
* Were internal policies actually followed?
In major trucking cases, carrier selection will likely become a key issue in discovery.
Documentation Is Now Critical
The strongest protection for freight brokers will be a clear, consistent, and well-documented carrier-vetting process. It is not enough to say that a carrier was approved. Brokers should be able to show how and why the carrier was approved.
That may include records showing:
* FMCSA safety information reviewed;
* insurance verification;
* authority and registration checks;
* internal approval criteria;
* safety reviews;
* compliance notes;
* escalation procedures; and
* the final reason for approving or rejecting a carrier.
A weak or informal process may create significant litigation risk.
Insurance Costs May Increase
This decision may also affect insurance. If brokers face more lawsuits, insurers may respond by increasing premiums, tightening underwriting requirements, or asking more questions about carrier-selection procedures. Brokers with strong compliance systems and good documentation may be in a better position when dealing with insurers. Brokers with inconsistent procedures, poor records, or informal vetting practices may face higher risk and higher costs.
For an industry already dealing with rising expenses, inflation, tight margins, and market uncertainty, this added exposure could be significant.
Smaller Brokers May Feel the Pressure
Larger freight brokers usually have stronger compliance departments, better technology, and more formal risk-management systems. Smaller brokers may not. As a result, this decision could create more pressure on smaller brokers to improve their systems or partner with stronger compliance providers.
Over time, the industry may see:
* more investment in carrier-vetting technology;
* more formal safety review procedures;
* more documentation requirements;
* more consolidation among brokers; and
* more preference for brokers and carriers with strong compliance records.
Shippers Should Also Pay Attention
Although the Montgomery decision focuses on freight brokers, shippers should not ignore it. If a shipper is involved in choosing or approving a carrier, that role may be reviewed in future litigation.
Shippers should review:
* broker agreements;
* routing guides;
* carrier approval procedures;
* delivery requirements;
* safety policies; and
* communications that may pressure speed over safety.
The goal is to clearly define who is responsible for carrier selection, safety checks, and compliance documentation.
What Transportation Companies Should Do Now
Transportation companies should not wait for a lawsuit to review their risk-management practices. Freight brokers, shippers, and motor carriers should consider taking the following steps:
- Review all carrier-vetting procedures.
- Update written policies for carrier selection.
- Confirm that safety checks are documented.
- Train employees on approval and escalation procedures.
- Review broker-carrier and shipper-broker agreements.
- Audit past carrier approvals for consistency.
- Speak with insurance professionals about coverage and risk.
- Work with legal counsel to reduce exposure before a claim occurs.
The Bottom Line
The Supreme Court has made clear that carrier selection is connected to highway safety. For freight brokers, this means negligent selection claims may be harder to dismiss early. Brokers may now face deeper discovery into how they selected a carrier and whether they acted reasonably. For shippers and motor carriers, the decision is also a reminder that safety, documentation, and compliance must be taken seriously.
The companies that adapt early will be in the best position to manage risk, control insurance issues, and defend themselves if litigation occurs.
In today’s transportation industry, a strong paper trail is not optional. It is part of the defense.
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Disclaimer: This content is for informational purposes only and does not constitute legal advice, and laws and legal interpretations may change after the date of publication.
Written by:
Gil Sánchez, Esq.
CEO | Civil Trial Attorney
Black Rock Trial Lawyers
Abogados Law
