Freight brokers and third-party logistics providers (3PLs) are the middlemen that match a shipper’s freight with a trucking company to haul it. For years, brokers argued they could not be sued when a truck they hired caused a crash, pointing to a 1994 federal law — the FAAAA — that limits state regulation of their services. On May 14, 2026, the Supreme Court rejected that argument. In Montgomery v. Caribe Transport II, LLC, the Court unanimously held that the FAAAA’s safety exception preserves a state’s power to hold a broker to its ordinary duty of care in choosing a safe carrier. The ruling resolves a split created by the Seventh Circuit’s 2023 Ye v. GlobalTranz decision and applies nationwide — opening a path to a solvent national broker that was, in much of the country, previously closed.
From the docket
Litigation Timeline
- May 14, 2026
Supreme Court rules brokers can be sued — Montgomery v. Caribe Transport IIverdict
A unanimous Supreme Court, in an opinion by Justice Barrett (with a concurrence by Justice Kavanaugh joined by Justice Alito), holds in Montgomery v. Caribe Transport II, LLC, No. 24-1238, that the FAAAA does not preempt a state negligent-hiring claim against a freight broker. The Court relies on the safety exception at 49 U.S.C. §14501(c)(2)(A). The ruling applies in all 50 states.
- 2023–2025
Federal appeals courts divide over FAAAA preemption of broker claimsregulatory
In the wake of Ye v. GlobalTranz, courts split on whether the FAAAA’s safety exception preserves state negligence claims against brokers — setting up the question the Supreme Court would ultimately resolve.
- 2023
Seventh Circuit shields brokers in Ye v. GlobalTranzverdict
The U.S. Court of Appeals for the Seventh Circuit holds that the FAAAA preempts a negligent-selection claim against a freight broker, largely insulating brokers from crash lawsuits across much of the country and deepening a split among the federal appeals courts.
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