Maritime Legal Update – June 2026
USA Supreme Court - freight broker liability
for carrier selection
(prepared
by Marek Czernis & Co. Law Office)
Firm note – transport, logistics and risk
management
The Law
Office actively advises shipowners, logistics operators, freight forwarders,
freight brokers and insurers on: transport liability, freight forwarding and
brokerage, cargo claims and litigation, operational compliance, carrier
selection liability, and negligent hiring / negligent selection disputes.
The U.S.
Supreme Court ruling may significantly affect freight brokerage and logistics
market practice.
1. Introduction – Supreme Court reshapes
freight broker liability
The United
States Supreme Court issued a unanimous decision in Montgomery v. Caribe
Transport II, LLC concerning freight broker liability for motor carrier
selection.
The Court
held that claims based on negligent hiring / negligent selection may proceed
under state law and are not automatically pre-empted by FAAAA – Federal
Aviation Administration Authorization Act.
2. Background of the case
The dispute
arose from a serious road accident in which the claimants alleged that the
freight broker entrusted transportation services to a carrier despite: significant
operational safety concerns, regulatory violations, and prior safety-related
warning signs.
The broker
argued that such claims were barred by federal pre-emption under the FAAAA.
3. Safety exception – key aspect of the ruling
The Supreme
Court concluded that claims relating to transportation safety fall within the
statutory “safety exception”.
As a
result: such cases may proceed under state tort law, freight brokers cannot
automatically rely on federal pre-emption, and the carrier selection process
may be reviewed under negligence principles.
4. Practical implications for the transport and
logistics sector
The ruling
may significantly affect: freight brokers, freight forwarders, logistics
operators, insurers, and transport organisers.
The
decision increases the importance of: carrier vetting procedures, due
diligence, safety ratings verification, regulatory background checks, insurance
verification, and documented carrier-selection procedures.
5. Risk management and compliance
The
judgment highlights the growing importance of compliance and operational risk
management within the transport sector.
A broker’s
formal intermediary role alone may no longer be sufficient to limit liability
where the carrier selection process was: inadequate, insufficiently verified, or
poorly documented.
6. Law Office conclusions
The Supreme
Court decision represents one of the most significant recent rulings concerning
freight broker liability.
The
judgment may lead to: increased liability exposure for brokers, stricter
compliance procedures, enhanced due diligence requirements, greater importance
of carrier-selection documentation, and changes in underwriting and insurance
practice.
The Law
Office continues to support clients in assessing the impact of such
developments on: freight forwarding agreements, logistics contracts, cargo
claims, insurance disputes, and operational compliance procedures.
Final note – our publications
Further
insights regarding maritime, transport, logistics and shipping & offshore
disputes are available at:
https://czernis.pl
https://www.linkedin.com/company/czernis