The Supreme Court issued its decision in Montgomery v. Caribe Transport II, LLC, just over two months ago, and since then, there have been many different views on what the Court decided and what its impact will be. While the decision addressed a rather narrow question, it highlighted an area of liability exposure for those hiring carriers that will likely have widespread reverberations. As the courts continue to develop the contours of broker liability, especially in the area of negligent hiring, one can anticipate a tightening broker liability insurance market and increased underwriting scrutiny of carrier selection protocols.
In a much-anticipated but surprisingly unanimous opinion issued on May 14 in Montgomery v. Caribe Transport II, LLC, the Supreme Court held a state law claim that a broker negligently selected or hired a motor carrier is not preempted by a federal deregulatory statute (the “FAAAA”), 49 U.S.C. § 14501. The decision resolves a split in the United States Courts of Appeals...
On March 4, the U.S. Supreme Court heard oral argument in an important case impacting broker liability for truck accident claims, Montgomery v. Caribe Transport II, LLC. The question before the Court is whether a federal deregulatory statute, 49 U.S.C. § 14501 (FAAAA), that preempts state laws relating to prices, routes, or services of motor carriers and brokers, preempts state common law claims against a broker for negligent selection of a carrier or driver, or whether the common law claims are saved from preemption...
The Federal Motor Carrier Safety Administration (FMCSA) has recently launched an information-gathering campaign intended to educate the agency regarding the operations of interstate property brokers. These inquiries generally focus on compliance with federal property broker regulations under 49 C.F.R. Part 371, including recordkeeping requirements. Companies holding broker authority should be familiar with those requirements and ensure their documentation is complete and accessible.
