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Guest Perspective: SCOTUS ruling exposes freight brokers to lawsuits | New Orleans CityBusiness.Arthur Chassaignac, Mouledoux, Bland, Legrand & Brackett//May 22, 2026// Arthur Chassaignac, Mouledoux, Bland, Legrand & Brackett//May 22, 2026// KEY TAKEAWAYS: On May 14, 2026, the Supreme Court of the United States issued a unanimous decision in Montgomery v.Caribe Transport II, LLC that could have significant implications for the transportation industry and the U.S.economy as a whole.The Supreme Court ruled that the Federal Aviation Administration Authorization Act (FAAAA) allows for third-party transportation brokers to be sued under state tort laws when the truck and shipment they coordinated are involved in an accident while on a route going from state-to-state.As a result, transportation brokers will now need to institute policies regarding the selection of motor carriers, created with an eye toward defending against lawsuits.The costs of litigation and insurance will be significant for brokers, and these increased costs will likely “cascade” through the industry and be paid in part by companies that ship products of all types, as well as American consumers.The Landmark Case In Montgomery, the plaintiff sued in federal court against various defendants after his tractor trailer collided with a truck carrying a load of plastic through Illinois.One of those defendants was C.H.Robinson Worldwide, Inc., a third-party transportation broker who coordinated the shipment.The plaintiff sued C.H.Robinson under state tort law, alleging it negligently hired the motor carrier when it knew, or should have known, from the carrier’s safety rating that hiring it to transport goods was reasonably likely to result in a crash which would injure others.When presented with C.H.Robinson’s legal challenge, the Supreme Court ruled that while the FAAAA exempts transportation brokers from lawsuits resulting from intrastate routes they coordinate, brokers can be sued for crashes occurring during their interstate routes.Essentially, third-party freight brokers can now be sued under state laws when a truck, carrying a shipment they coordinated, gets into an accident while on a route spanning more than one state.How the Supreme Court Interpreted the FAAAA After the Federal Government began regulating the trucking industry in 1935, state regulation continued to inhibit competition.To solve this issue, Congress passed the FAAAA in 1994, which prevented states from regulating the motor carrier business.In 1995, Congress amended the Act to provide protection for other parties in the industry, including third-party freight brokers.Within the FAAAA is a “safety exemption,” designed so that states would retain the authority to pass regulations for motor vehicle safety.In Montgomery, the Supreme Court applies this safety exemption to third-party transportation brokers coordinating state-to-state routes, overruling lower courts which interpreted the FAAAA to provide brokers total immunity from liability for both interstate and intrastate routes.The Supreme Court states that because motor carriers could get into accidents and injure others, requiring brokers to exercise ordinary care in selecting carriers is a regulation of motor vehicles safety.To be clear, due to the specific language of the safety exemption in the Act, brokers cannot be sued for a motor vehicle accident that occur during a purely intrastate route they coordinate, i.e.transporting goods within Louisiana.The Impact on Freight Brokers This Supreme Court decision may be one of the most economically impactful judicial opinions in recent memory.The current United States brokerage market has a projected value of $21.28 billion by the end of 2026, and is expected to reach $30.17 billion in 2031.Today, approximately 28,000 brokers pick from more than 780,000 carriers to transport about a third of all freight shipped in the United States.In Louisiana alone there are over 1,000 brokers coordinating shipments throughout the country on a daily basis.Now, every time a lawsuit concerning motor carrier accidents are filed, the broker will undoubtedly be named as a defendant.Freight brokers that coordinate interstate shipments will be at risk for liability every time they schedule a route, even if they followed proper procedures.As noted by the Supreme Court, in 2022 there were about 500,000 reported trucking accidents.Such trucking accidents could potentially result in settlements or jury verdicts worth millions of dollars.In fact, trucking accident litigation is so profitable that Louisiana recently saw the federal convictions of individuals organizing fraudulent 18-wheeler accidents, some estimating the payouts totaling over $50 million.During a lawsuit, much of the brokers’ operations will potentially be made part of the public record, as discovery procedures allow parties to demand the exchange of a wide variety of internal materials.To protect themselves, freight brokers will need to institute policies regarding the selection of motor carriers, monitoring and storing internal and external communications, and comprehensive documentation of carrier selection.This will require expert legal counsel in both contract drafting, creating internal policies, and in defending against state law negligent hiring claims which could potentially result in jury verdicts valued in millions of dollars.The Impact on the U.S.Economy While in theory the Supreme Court’s ruling may make roadways safer, it’s entirely possible that a negative impact will be felt throughout the U.S.As explained by the Supreme Court, sellers of goods routinely use motor carrier companies to transport products, but because finding a carrier can be costly and time consuming, many sellers rely on third-party brokerage companies to do it for them.Now, it is highly likely that the cost for brokers’ services will go up due to their increased costs for insurance and litigation.As a result, we could see the price of a wide variety of wholesale and consumer goods increase to account for the additional costs that companies are paying for shipping.In addition, players in the industry, such as freight brokers, independent motor carriers and other small businesses, could experience greater financial strain, making it hard to stay afloat.This will especially be true in states that are known for their oppressive business regulations.Though it remains to be seen whether Congress will act to provide freight brokers with liability immunity, one thing is for certain: Louisiana ex-pats will need to keep an eye on the cost of shipping crawfish.Arthur Chassaignac is an attorney at Mouledoux, Bland, Legrand & Brackett.His practice focuses on admiralty and maritime, transportation and automobile defense and litigation, general casualty and insurance defense, municipal liability, and first party property insurance defense.