What the Montgomery Decision Means for Transportation Risk Leaders

A recent U.S. Supreme Court decision is bringing renewed attention to how freight brokers select motor carriers and how those decisions may be evaluated after a serious loss.

In Montgomery v. Caribe Transport II, LLC, the Court held that a state-law negligent-hiring claim against a freight broker was not preempted by the Federal Aviation Administration Authorization Act’s motor vehicle safety exception.

For transportation risk leaders, brokers, shippers, and fleet-focused organizations, the decision is a useful reminder that carrier selection processes can come under close scrutiny following a serious accident.

Why this matters

The case involved a serious truck accident and a claim that a freight broker failed to exercise reasonable care when selecting the motor carrier involved.

The Supreme Court did not decide whether the broker was negligent. Instead, it concluded that this type of negligent-hiring claim could proceed under state law because it fell within the federal law’s motor vehicle safety exception.

That distinction matters.

The ruling may lead to greater focus on what information was available when a carrier was selected, how that information was evaluated, and whether the organization followed a consistent process.

For transportation organizations, it is another reason to take a close look at how carrier decisions are made, documented, and reviewed.

What prepared organizations can consider now

A clear, consistent carrier selection process can help teams make informed decisions and create a stronger record of how those decisions were reached.

Transportation risk leaders may want to review:

• Written carrier selection standards, including how potential safety concerns are identified and escalated
• Documentation showing what information was considered when a carrier was approved
• Ongoing monitoring practices rather than relying only on initial onboarding
• A defined process for handling exceptions when established criteria cannot be followed
• Coordination among operations, safety, risk management, and insurance teams when carrier decisions involve additional risk considerations

The Court’s opinions also reflect the practical realities of carrier selection. Brokers may not always be in a position to fully assess the relative safety of every carrier, but available safety information can still matter when those decisions are made.

The practical takeaway is not that every decision must eliminate risk. It is that organizations should have a thoughtful, consistent process for evaluating available information and documenting how decisions are made.

Where Patriot can help

Patriot Growth Insurance Services works with transportation organizations to help identify risk considerations, evaluate insurance and risk management strategies, and connect clients with specialized expertise as their operations evolve.

That can include helping teams think through risk management practices, insurance program structure, loss control resources, and broader transportation exposures. The right approach will vary based on the organization, its operations, and its risk profile.

Bottom line

Montgomery is a decision about federal preemption, not a finding that the broker in the case was negligent.

For transportation risk leaders, however, it reinforces the value of reviewing carrier vetting, monitoring, documentation, and exception processes before a serious loss puts those decisions under scrutiny.

A strong process cannot eliminate every risk. It can create greater clarity, support more informed decisions, and help teams move forward with confidence.

Talk with our team to review your transportation risk strategy and discuss where additional support may be helpful.