Supreme Court Declines to Protect Shipping Industry
Supreme Court Declines to Protect Shipping Industry
May 14, 2026
Montgomery v. Caribe Transport concerns the liability of freight brokers
WASHINGTON, D.C. (May 14, 2026) – NFIB is discouraged by the decision today in the case Shawn Montgomery v. Caribe Transport II, LLC, et al. at the U.S. Supreme Court. The Court’s ruling means that the regulation of motor carrier safety will be by a patchwork of state court decisions instead of a uniform nationwide standard, which will have broad implications for safety, supply chains, and interstate commerce. NFIB joined several business groups in filing an amicus brief in the case emphasizing the critical role that freight brokers play in today’s shipping industry.
“This decision doesn’t just expand freight broker liability, it eliminates all clarity and consistency in motor carrier safety standards for our nation’s supply chains,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “Without a uniform standard, every small business who uses a trucking company will be hit with higher costs and reduced availability as the resulting patchwork of rules and risk ricochets through the supply chain.”
The case questioned whether freight brokers can be held liable under state law for a contracted motor carrier’s negligent hiring decisions. NFIB’s brief argued that increasing broker liability would impose enormous costs on the shipping industry without improving safety. Unfortunately, the Court disagreed. This ruling will not improve safety, it will only create confusion, inconsistency, and instability.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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