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Supreme Court narrows FAAAA pre-emption shield for freight brokers and 3PLs

Learn more about the Montgomery ruling and its practical implications at a high level.

05/21/2026

On May 14, 2026, the US Supreme Court issued a unanimous ruling in Montgomery v. Caribe Transport II, LLC, holding that the Federal Aviation Administration Authorization Act (FAAAA) does not preempt state tort claims alleging negligent selection of motor carriers by freight brokers for interstate freight movements.

This ruling removes a key procedural shield many brokers relied on and signals heightened scrutiny from plaintiffs, regulators, and underwriters. The decision has broad relevance across the transportation ecosystem — including brokers, third-party logistics, motor carriers that operate brokerages, and potentially shippers who hire carriers directly — and raises new questions about documentation, vetting practices, and insurance responsiveness.

In response, experts from Marsh’s Transportation and Logistics Practice created a detailed white paper designed to help you navigate these evolving challenges. This white paper breaks down the Montgomery ruling and its practical implications at a high level: how courts are likely to evaluate carrier selection practices, the evidence and FMCSA data points that will be central in discovery, and the ways liability exposure could expand for brokers (and, depending on role or state law, potentially shippers). It also outlines the evolving litigation and underwriting landscape, insurance considerations (broker liability, contingent auto, E&O, and excess), and special issues for dual authority operators.

Use this white paper to help you:

  • Compare existing carrier selection and onboarding practices against the report’s discussion of evidence areas and vetting indicators.
  • Identify documentation gaps (exception logs, vetting records, audit trails) that could be targeted in litigation discovery.
  • Inform contract reviews by highlighting language and provisions the report flags as important for defensibility and risk transfer.
  • Assess current coverage (broker liability, contingent auto, E&O, excess) to better brief brokers/insurers ahead of renewals.

Download the full report for a detailed, section by section analysis and the key lessons you need to understand now.

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