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ARTICLE · 03 JULY 2026

Freight Brokers And Risk Management In The Post-Montgomery World

Gardiner Roberts LLP
Gardiner Roberts LLP
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The Supreme Court's Montgomery v. Caribe Transport II decision has eliminated a critical preemption defense for freight brokers, exposing them to state law negligence claims for hiring unsafe motor carriers. This ruling creates unprecedented litigation risk and insurance cost implications for both U.S. and Canadian freight brokers operating in interstate commerce, prompting the Transportation Intermediaries Association to petition for federal safety selection standards.

United StatesTransport
M. Gordon Hearn
M. Gordon Hearn
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The United States Supreme Court’s decision in Montgomery v. Caribe Transport II, LLC (“Montgomery”) in May of this year has confirmed that “state law” negligence claims may be brought against freight brokers for hiring unsafe motor carriers in connection with vehicle accidents in interstate commerce. As a result, freight brokers have lost what had been a key “preemption” defence and settlement leverage point. 

The Montgomery ruling exposes freight brokers to increased litigation risk and potential liability for personal injury linked to carrier selection, which will drive up insurance costs and litigation settlement values.

The Transportation Intermediaries Association (“TIA”) filed a petition on June 9, 2026 with the United States Federal Motor Carrier Safety Administration to address the resulting post-Montgomery fallout stating, “the outcome in the Montgomery case has created a heightened and frankly, untenable expectation on brokers and shippers to independently determine the

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