Business Groups Urge Supreme Court to Preempt State Law Negligence Claims Against Freight Brokers

The Supreme Court is reviewing a case that will determine whether federal law preempts state law negligence claims against freight brokers. The outcome could have significant implications for distributors, as a ruling in favor of state laws threatens to create a patchwork of transportation regulations companies must operate under.

The case under consideration is Montgomery v Caribe Transport II. According to court documents, an individual, Shawn Montgomery, was severely injured when his truck was hit by a tractor-trailer on the shoulder of an Illinois highway. Montgomery sued not only the driver, but also the carrier, Caribe Transport II, and the freight broker that arranged delivery of the shipment, C.H. Robinson Worldwide. The lawsuit argued that C.H. Robinson had negligently hired the driver and carrier and was vicariously liable for the injury.

The U.S. District Court for the Southern District of Illinois and the U.S. Court of Appeals for the 7th Circuit both ruled against Montgomery, holding that the driver and carrier were C.H. Robinson’s independent contractors. As part of its opinion, the U.S. Court of Appeals for the 7th Circuit cited its recent decision in a similar case, Ye v. GlobalTranz Enterprises, where it ruled that the preemption provision of the Federal Aviation Administration Authorization Act (FAAAA) bars state law claims against freight brokers for the negligent hiring of motor carriers and their drivers.

Montgomery then appealed the decision to the U.S. Supreme Court and the higher court has scheduled arguments for March 4, 2026. On Jan. 21, the National Association of Wholesaler-Distributors (NAW), the U.S. Chamber of Commerce, and other business groups filed a joint amicus curiae brief urging the court to hold that federal law preempts state law negligence claims against freight brokers. The brief explains that negligent-hiring claims fall squarely within the FAAAA’s express preemption provision because they directly relate to a broker’s core service — arranging transportation of property by motor carrier.

Further, the brief rejects Montgomery’s argument that the FAAAA’s limited safety exception applies, because that exception preserves state authority only over safety regulations directly related to motor vehicles. As NAW explains, freight brokers do not operate or maintain trucks.

“Trucking is a key mode of transportation for America’s wholesaler-distributors,” said Brian Wild, chief government relations officer at NAW. “Subjecting brokers to state-by-state negligence lawsuits for performing that core service would reduce carrier options, raise freight costs, and make it harder for distributors to serve customers efficiently and competitively.”