06/17/2026
A recent U.S. Supreme Court decision in Montgomery v. Caribe Transport II, LLC is expected to significantly impact how risk is assigned across the transportation industry.
The Court narrowed federal preemption protections that freight brokers have historically relied on, allowing more state-law negligent hiring and carrier selection claims to proceed in litigation.
What this means for the industry:
• Carrier selection is now more directly tied to safety accountability
• Increased exposure for brokers in negligent hiring/selection claims
• Greater emphasis on documentation, vetting, and compliance processes
• Higher insurance and litigation costs expected across the sector
• Potential long-term consolidation among smaller brokerage firms
For shippers and brokers alike, this ruling reinforces a clear shift: carrier selection is no longer just an operational decision—it is a documented safety responsibility.
At Harris Brokerage, we continue to prioritize strong carrier vetting, compliance standards, and transparent processes designed to support safe and reliable freight movement in an evolving regulatory landscape.
As the industry adapts, disciplined ex*****on and risk awareness will be more important than ever.
Christopher J. Kane of Adams & Reese examines the Supreme Court's Montgomery v. Caribe Transport II, LLC decision as a consequential ruling on freight broker liability, having narrowed federal preemption under the Federal Aviation Administration Authorization Act of 1994.