Montgomery v. Caribe Transportation II, LLC: What Brokers, Carriers, and Drivers Need to Know
On May 14th, 2026, the Supreme Court of the United States issued a 9-0 unanimous ruling in Montgomery v. Caribe Transportation II, LLC that could significantly impact the liability landscape in the transportation and trucking industry. The Court ruled that freight brokers can be sued under state law if they are accused of negligently choosing unsafe carriers.
This decision clarified that the Federal Aviation Administration Authorization Act (FAAAA) does not prevent certain state-law claims involving safety-related negligence in carrier selection from moving forward.
What was the key issue in Montgomery v. Caribe Transport II, LLC?
The case arose from a serious highway accident in which a stopped tractor-trailer was struck by another truck operated by a driver employed by a motor carrier. The plaintiff suffered severe injuries, including the loss of a leg. The shipment had been arranged by a freight broker.
The central issue was whether the freight broker could be held liable for negligently selecting a motor carrier with a poor safety record, including prior violations and red flags. The plaintiff argued that when a broker hires a carrier that poses a known safety risk, that decision can impact public safety and should come with accountability.
What was the key outcome?
The Supreme Court issued a unanimous 9–0 decision in favor of the injured plaintiff, holding that the Federal Aviation Administration Authorization Act (FAAAA) does not block state-law claims involving safety-related negligence.
In other words, brokers may still face lawsuits alleging negligent carrier selection when their actions contribute to unsafe conditions, even though federal law continues to protect many other areas of transportation operations from state regulation under the FAAAA.
This decision does not mean brokers are automatically responsible for every accident involving a hired carrier. Instead, it focuses on whether brokers took reasonable steps to review and select safe carriers.
What is the FAAAA and how does it apply to freight brokers and carriers?
The Federal Aviation Administration Authorization Act (FAAAA) is a federal law passed in 1994 to deregulate the trucking industry. Its main purpose is to prevent states from interfering with the economic and operational aspects of the industry, making it easier for carriers and freight brokers to conduct business.
In the past, this law was often used by freight brokers and carriers as a defense to avoid liability in negligent carrier selection cases. The recent decision in Montgomery v. Caribe Transportation II, LLC (2026) changes how that defense may be applied in safety-related cases, making it more important for brokers to demonstrate that they made responsible carrier selection decisions.
What does this ruling mean for freight brokers?
Until this ruling, freight brokers that were sued for safety-related negligence were often able to rely on the FAAAA to avoid liability and a trial. That defense is now more limited in cases involving alleged safety-related negligence. A freight broker can now face lawsuits and may be held liable if their carrier selection decisions contributed to unsafe conditions on the road.
A broker who reviews a carrier’s safety and compliance record, asks the right questions, and documents that process has a meaningful defense. By contrast, a broker who books a load without evaluating who is hauling it is in a much more vulnerable position. Put simply, carrier selection is no longer just a business decision; it’s a legal responsibility that brokers may have to defend in court.
How does this decision impact motor carriers?
This greatly increases the importance of a carrier’s safety ratings. CSA scores, FMCSA safety ratings, and BASIC ratings may become even more important factors brokers consider when selecting carriers. For carriers, maintaining a strong safety record is not only important for compliance but can also directly impact future business opportunities, as brokers may become more selective and prioritize working with carriers that demonstrate strong safety practices, consistent compliance, and a reliable track record.
What does this mean for truck drivers?
For truck drivers already working with a carrier, this decision will likely encourage carriers to strengthen safety standards, which may lead to more training, additional documentation requirements, and increased focus on compliance. Drivers should carefully review a carrier’s safety record before signing on, as companies with strong safety practices, proper maintenance, and compliance standards are more likely to provide stable job opportunities.
What practical steps should brokers take now?
- Strengthen your carrier vetting process. Review and update your carrier qualification procedures to ensure safety information is consistently reviewed before accepting a carrier.
- Document every step of the vetting process. Keep thorough records of carrier reviews, safety reports, communications, insurance documentation, and compliance checks. This documentation can help demonstrate that reasonable steps were taken if a dispute arises.
- Monitor carrier safety performance. Regularly review and monitor carriers’ safety ratings to ensure they remain compliant and consistently meet safety standards.
What should carriers and drivers do in response?
- Research where your current FMCSA ratings fall and consistently monitor your safety ratings.
- Keep records of inspections, maintenance, driver qualifications, and safety procedures organized and accessible.
- If you see any inconsistencies or inaccuracies in your records, immediately dispute them and maintain up-to-date documentation
- Prioritize consistent compliance with safety regulations. Ensure drivers, equipment, and operations are aligned with FMCSA regulations at all times, not just during inspections.
- Build and maintain a strong safety reputation. A well-documented compliance history can help carriers stand out when brokers are deciding which companies to work with.
How could this affect the broader transportation industry?
This shift places a greater emphasis on safety and accountability across the entire transportation industry. Safety measures may become a more significant factor in how freight brokers evaluate potential carrier partners. As a result, carriers may feel increased pressure to maintain clean and consistent safety records, while freight brokers and shippers may become more selective about the companies they choose to work with.
Montgomery v. Caribe Transportation II, LLC marks a major shift in how responsibility is viewed in the freight industry. Brokers may no longer be able to rely on legal protections as a complete defense in safety-related negligence claims. Instead, they will need to demonstrate that they took reasonable steps when selecting carriers. This means brokers should actively review carrier safety records, identify potential red flags, and make informed hiring decisions. For carriers, this reinforces the importance of maintaining strong compliance practices, accurate records, and a commitment to safety.