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Supreme Court: 9 - Brokers: 0

We sat down with Jayne Bart-Plange Esq., Partner & Director in Logistics, Transportation & Supply Chain Litigation at Burke, Warren, MacKay & Serritella, to discuss the Supreme Court's recent broker liability ruling, how enforcement gaps are shifting liability onto brokers, and the practical steps you can take to mitigate legal and operational risk as a broker.

Kaja Kusińska · June 30, 2026 · 4 min read

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Inside the Case That’s Shaking Up the Entire Industry

Back in April, we sat down with transportation attorney Jayne Bart-Plange, to unpack what the Montgomery v. Caribe case meant before the ruling.

Since then, the Supreme Court issued its unanimous 9–0 decision on May 14, ruling against transportation brokers. This means the federal preemption no longer shields brokers from negligent hiring claims brought in state court.

The main question was:

When does a broker’s normal job of hiring carriers turn into legal “negligent hiring” liability?

The Rise of Broker Lawsuits

Plaintiff attorneys are increasingly targeting brokers under negligent hiring theories, arguing they are be the ones responsible for the safety of the carriers they select.

Jayne puts it bluntly.

"They will sue early. They'll sue often, and suit everybody involved to get to the deeper pockets”

What the F4A Preemption Means

As Jayne explained, the states generally cannot impose liability rules that interfere with how brokers perform their core function—arranging transportation between shippers and carriers.

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“So the preemption says that states are prevented from enacting or enforcing laws related to the price, route, or service of any motor carrier or any motor private carrier broker or freight forwarder with respect to the transportation of property.”

Jayne’s own take on the preemption is that it’s created for a reason.

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“And I think that the preemption is clear. You've got price, route, and service. At its base level, brokers are serving as a conduit. And I think that there has to be a clear delineation between what's due diligence and what is someone undertaking a duty.”

Furthermore, she believes that if brokers are held responsible by simply executing a portion of their job or large portion of their job, they now have to take greater responsibility for vetting carriers than they typically would have had to before.

At the same time, Jayne acknowledges a counterargument: brokers still have a responsibility to vet properly—but the system itself is uneven.

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“If this went the other way and they said, no, ‘The preemption, it doesn't cover you here.’ There is something to be said about, ‘OK, but Federal Government, you are giving out these numbers. You're allowing people to pass through the system. And then you're telling me that I've got to vet these very same people that you have already vetted in some way.’ There is something hypocritical about that.”

She also referenced a CBS 60 Minutes report statistics:

~700,000 motor carriers in operation
~350 CSA inspectors nationwide

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“It's just shocking to hear that there's so few people that are actually inspecting these companies and ensuring that they're actually compliant with federal law… and now they're trying to blame the brokers, essentially.”

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The takeaway: enforcement gaps are real—and brokers are increasingly caught in the middle.

What Should Change?

Jayne mentions a few options.

Re-evaluating how CDLs are granted
Strengthening oversight of insurance requirements
Updating outdated minimum insurance thresholds

Today, carriers are only required to carry a minimum of $750,000 in liability coverage - an outdated number.

Jayne shared practical advice on the steps brokers can take to protect themselves and their businesses.

Broker Risk Management

Check your insurance policies: make sure coverage is correct and current.
Make sure that you check your exclusions: know exactly what is—and isn’t—covered.
Audit carrier and shipper relationships: if you have long-standing relationships with certain carriers or shippers, it's still good to periodically check up on the paperwork that you have with them.
Enforce internal protocols: fraud prevention, double brokering safeguards, and shipment security procedures must be consistently followed and trained across teams.

And above all: know who you're working with.

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“Do your own digging…. You'd be surprised how many fake carriers simply do not check the address they put on an application… A quick Google search can tell you a lot. So sometimes those little things can help you just avoid a catastrophe.”

At its core, this case highlights a growing tension in freight law: how far should a broker’s responsibility extend when selecting carriers in a system with uneven enforcement and rising litigation risk?

As the legal landscape continues to evolve, brokers are being pushed to balance operational efficiency with increasingly aggressive liability exposure.

And for now, the line between “due diligence” and “legal duty” is getting harder to define.