Supreme Court Clarifies Broker Exposure Under FAAAA Safety Exception in Montgomery v. Caribe Transport II

For years, freight brokers have used FAAAA preemption as a defense to state-law negligence claims tied to carrier selection. Post-Montgomery, that defense is much less effective when the claim is framed as a safety-related failure to use reasonable care.

This decision is likely to increase litigation exposure for freight brokers and may result in more extensive carrier vetting, increased compliance costs, and additional scrutiny of carrier-selection practices throughout the supply chain.

Carriers should expect increased scrutiny from brokers. Post-Montgomery, a carrier’s ability to demonstrate safety and reliability will directly affect how often it gets selected for freight. Accident histories, Federal Motor Carrier Safety Administration safety data, insurance coverage, maintenance records, and contractual risk-allocation provisions may now carry even greater weight.

Brokers should immediately review and document their carrier-selection procedures. Particular attention should be paid to FMCSA safety data, insurance coverage, maintenance history, prior accidents, and any other objective indicators of a carrier’s safety performance. Because the “reasonable care” standard is highly fact-specific, contemporaneous documentation explaining why a carrier was selected may become a critical defense in future litigation, especially when using new carriers or transporting higher-risk cargo.