Supreme Court allows negligent-hiring lawsuits against freight brokers, increasing liability risk for CHRW and sector

The U.S. Supreme Court on May 14, 2026, unanimously ruled that freight brokers can face state negligent-hiring claims over carrier selection, rejecting a key federal preemption defense used by the brokerage industry. The decision reverses the 7th U.S. Circuit Court of Appeals and allows Shawn Montgomery to pursue claims against C.H. Robinson Worldwide Inc. (CHRW) after a crash involving a carrier cost him a leg. Justice Amy Coney Barrett wrote that the Federal Aviation Administration Authorization Act’s safety exception preserves state authority over claims tied to motor vehicle safety. Justice Brett Kavanaugh, joined by Justice Samuel Alito, concurred and said brokers would otherwise operate in a regulatory “black hole” because federal rules impose limited safety standards on carrier selection. The ruling could raise litigation and insurance exposure for freight brokers, 3PLs and digital freight platforms. Brokers may now face discovery over carrier vetting policies, FMCSA safety data reviews, crash histories and out-of-service records when selected carriers are involved in serious accidents.