Supreme Court Rules Freight Brokers Can Be Held Liable for Hiring Unsafe Carriers

The U.S. Supreme Court has clarified the scope of freight broker liability for negligent hiring. In Montgomery v. Caribe Transport II, LLC, 608 U.S. ____ (2026), the U.S. Supreme Court held that a claim that one company negligently hired another to transport goods is not preempted by the Federal Aviation Administration Authorization Act (FAAAA). According to the unanimous Court, because States retain authority to regulate safety “with respect to motor vehicles” under the Act, such claims are not preempted.

Facts of the Case

Petitioner Shawn Montgomery sustained severe and permanent injuries after his tractor trailer was struck by a truck driven by respondent Yosniel Varela-Mojena. Varela-Mojena was driving a load of plastic pots through Illinois for respondent Caribe Transport II, LLC, a motor carrier. Respondent C.H. Robinson Worldwide, Inc.—a transportation broker—had coordinated the shipment.

Montgomery filed suit in Federal District Court, alleging that C.H. Robinson was liable for his injuries because it negligently hired Varela-Mojena and Caribe Transport. Montgomery claimed that C.H. Robinson knew (or should have known) from Caribe Transport’s safety rating that hiring it to transport goods was reasonably likely to result in crashes that would injure others.

The District Court held that the FAAAA (49 U.S.C. §14501(c)(1))—which preempts state laws related to the prices, routes, and services of the trucking industry—expressly preempted Montgomery’s negligent-hiring claim against C.H. Robinson. The District Court further held that the claim did not fall within the FAAAA’s safety exception, which provides that the FAAAA’s preemption provision “shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” The Seventh Circuit affirmed. The Supreme Court granted certiorari to resolve the circuit split over whether the FAAAA’s safety exception permits negligent-hiring claims against brokers.

Supreme Court’s Decision on Freight Broker Liability

The Supreme Court reversed by a vote of 9-0. The Supreme Court held that 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. Justice Amy Coney Barrett wrote on behalf of the unanimous Court.

According to the Court, even if the FAAAA otherwise preempts Montgomery’s negligent-hiring claim against C.H. Robinson, the safety exception saves it. “The preemption question thus boils down to whether negligent-hiring claims of the type Montgomery presses are claims ‘with respect to motor vehicles,’” Justice Barrett wrote. “We conclude that they are.”

In reaching its decision, the Court interpreted the FAAAA’s preemption provision in accordance with ordinary dictionary definitions. With regard to the phrase “with respect to,” it also noted that the Court has previously construed the same phrase in the FAAAA’s preemption provision to mean “concern[s].” As Justice Barrett explained, “Putting the pieces together, a claim is ‘with respect to motor vehicles’ if it ‘concerns’ or ‘regards’ the vehicles used in transportation.”

The Supreme Court went on to conclude that requiring C.H. Robinson to exercise ordinary care in selecting a carrier “concerns” motor vehicles—most obviously, the trucks that will transport the goods. Accordingly, Montgomery’s negligent-hiring claim falls within the FAAAA’s safety exception, which saves it from preemption.

Finally, the Supreme Court rejected various counterarguments raised by C.H. Robinson and the United States. With regard to the contention that construing the safety exception as Montgomery requests would swallow the FAAAA’s express preemption provision whole, the Court cited that it saves only a subset of preempted claims: those involving regulations concerning motor vehicle safety. State laws related to motor carrier prices, routes, and services that have no relationship to safety remain preempted.