SCOTUS rules 9-0 against brokers in Montgomery case
FreightWaves • • nation
Key Points:
- The U.S. Supreme Court unanimously ruled that brokers who hire carriers are subject to state tort actions under the safety exception of the Federal Aviation Administration Authorization Act (F4A), clarifying that "with respect to motor vehicles" includes brokers.
- The case, involving C.H. Robinson and injured truck driver Shawn Montgomery, was remanded to the Seventh Circuit, reversing prior rulings that brokers were shielded from state lawsuits under F4A preemption.
- Justice Amy Coney Barrett authored the opinion, emphasizing that negligent-hiring claims concern motor vehicle safety and thus fall within the F4A’s safety exception, allowing state-level legal action against brokers.
- The Court rejected C.H. Robinson’s arguments about the scope of the safety exception and intrastate versus interstate transport language, with concurring justices Kavanaugh and Alito noting the complexity and expressing some sympathy for the brokerage industry's position.
- The decision surprised some legal observers by arriving earlier than expected and has significant implications for freight brokers, who had anticipated the ruling and discussed it in earnings calls and industry meetings.