In a big Supreme Court showdown over trucking accidents, major business groups have filed a friend-of-the-court brief supporting freight brokers. The case, Shawn Montgomery v. Caribe Transport II, LLC, et al., stems from a 2018 crash where a trucker hired through broker C.H. Robinson hit Montgomery’s car, causing injuries. Montgomery sued the broker for negligent hiring, claiming CH picked an unsafe carrier. The Seventh Circuit Court said federal law blocks such state lawsuits against brokers.
Now, the Supreme Court will decide.
A Who’s Who of Business Organizations
Nearly as important as the arguments advanced in this amicus brief are the entities that are advancing them. Let’s dig in:
- U.S. Chamber of Commerce The U.S. Chamber of Commerce is the world’s largest business organization, founded over 100 years ago. It represents about 300,000 direct members and over three million companies indirectly, including small businesses, local chambers, industry groups, big corporations, and new sectors. Its main goal is to advocate for policies that create jobs and grow the economy, while providing members with legal help, policy info, resources to build their businesses, and connections to leaders in business and government.
- Business Roundtable Business Roundtable is a group of more than 200 CEOs from America’s top companies, covering every part of the U.S. economy. Founded in 1972, it serves as the main voice for these leaders in Washington, D.C., working with both political parties on practical solutions to national issues. These companies support one in four American jobs and nearly a quarter of the country’s GDP.
- National Association of Wholesaler-Distributors (NAW) The National Association of Wholesaler-Distributors (NAW) was founded in 1946 and represents the wholesale distribution industry, which acts as a key link between manufacturers and retailers or end users like businesses and governments. It includes employers of all sizes, national, regional, and state, plus trade associations across 19 types of products. Together, its members cover about 35,000 companies with nearly 150,000 locations nationwide, mostly small- to medium-sized family-owned businesses. The industry generates over $8 trillion in yearly sales and employs more than 6 million people.
- National Federation of Independent Business (NFIB) The National Federation of Independent Business (NFIB) is a nonprofit, nonpartisan group founded in 1943 by C. Wilson Harder to give small and independent business owners a say in government decisions. It advocates for its members in Washington, D.C., and all 50 state capitals on issues like taxes, healthcare, and regulations. NFIB represents businesses across all industries, from one-person operations to companies with hundreds of employees, with policies set by member votes.
- National Retail Federation (NRF) The National Retail Federation (NRF) is the world’s largest retail trade association, founded over a century ago to represent the retail industry. It advocates passionately for the people, brands, policies, and ideas that help retail succeed. NRF provides news, insights, events, and resources to its members, which include retailers of all sizes and types. It stands up for retail in policy debates, helping the industry thrive amid changes like technology and consumer trends.
It’s worth noting that the U.S. Chamber of Commerce maintains a high success rate before the Supreme Court, winning approximately 70% to over 80% of cases in which it files amicus briefs during the Roberts Court era.
Federal Law Shields Brokers from State Tort Claims
Now that we know the players, let’s dig into the arguments. The brief’s main argument hinges on the Federal Aviation Administration Authorization Act of 1994 (FAAAA). This law aimed to deregulate trucking after airlines were freed up in the 1970s. It says states can’t pass laws that “relate to” a broker’s prices, routes, or services for moving property by truck. While I have written about this issue extensively, this amicus echoes previously advanced positions by CH, TIA, and the United States among others.
Negligent Hiring “Relates To” Broker Services
The groups say negligent-hiring lawsuits clearly “relate to” what brokers do. Brokers connect shippers with carriers, they negotiate deals, check insurance, and pick reliable haulers. A lawsuit claiming bad hiring directly hits this core service. The brief cites Supreme Court cases like Morales v. Trans World Airlines and Dan’s City Used Cars v. Pelkey, which define “relate to” broadly: If a state law has a “connection with” broker services, it’s preempted. The groups point out that courts in the Ninth, Eleventh, and Sixth Circuits agree: These claims are blocked. Allowing suits would force brokers to change how they operate, raising costs, and messing with the uniform federal system Congress wanted.
Safety Exception Doesn’t Apply Here
FAAAA has a “safety clause” that saves state laws “with respect to motor vehicles.” But the brief argues this doesn’t cover broker hiring claims. Why? The claim isn’t directly about vehicles, it’s about a broker’s business choice far from the road. The clause is narrow, focused on things like vehicle inspections or driver qualifications, not broker decisions. Citing cases like City of Columbus v. Ours Garage, they say expanding it to brokers would swallow the preemption rule. Importantly, the law defines brokers separately from carriers, so the exception targets vehicle operators, not middlemen.
Huge Costs, No Safety Gains
Freight brokers coordinate the transportation of goods from one destination to another. They neither own or maintain the trucks nor employ or train the drivers. And the safety standards that govern motor carriers and drivers with respect to these issues are set by extensive federal and state regulations. As a result, imposing common-law tort liability on brokers for vehicle accidents that occur in the course of shipments they coordinate would not improve safety. Rather, it would serve only to increase the costs of freight trucking, raising prices for shippers and consumers alike.
What’s at Stake for Freight?
If the Court sides with Montgomery, brokers will face a patchwork of state rules, driving up insurance and fees. Small brokers might fold, consolidating power with big players. But upholding preemption keeps things efficient, letting brokers focus on logistics, not lawsuits. Regardless of the outcome, this case will reshape trucking. Oral arguments in this case are set for early March, but with the Chamber on their side, brokers across the United States are justifiably sleeping a bit easier.
Matthew Leffler is a transportation attorney, adjunct professor of law at Michigan State University College of Law, and the host of the Armchair Attorney® Podcast. He can be reached at [email protected].
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