Supreme Court Ruling Shifts Safety Burden of Proof to Freight Brokers

A unanimous Supreme Court decision in Montgomery v. Caribe Transport II, LLC has ended decades of FAAAA preemption shielding freight brokers from state-law negligent hiring claims, exposing brokers to liability when they knew or should have known a carrier had safety problems. The ruling, issued in May, does not impose strict liability on brokers but makes their carrier-selection process — what they knew, when, and how they responded — subject to far greater scrutiny after an accident. Baseline checks such as active insurance and acceptable FMCSA safety ratings may no longer suffice as evidence of due diligence. The decision arrives as insurance underwriters reassess carrier risk profiles and "nuclear verdicts" in trucking litigation push premiums higher industry-wide. Carriers with documented, ongoing safety programs — including video telematics and consistent coaching — are better positioned in broker selection and insurance renewal conversations. Lytx, a 15-year DOT compliance provider, is hosting an Oct. 27 webinar at 10 a.m. PST on building a defensible safety record.