Montgomery v. Caribe Transport II, LLC

The Supreme Court’s decision in Montgomery v. Caribe Transport II, LLC is now one of the most important freight broker liability developments in recent trucking litigation.

On May 14, 2026, the U.S. Supreme Court unanimously held that state-law negligent-hiring claims against freight brokers are not automatically preempted by the Federal Aviation Administration Authorization Act, commonly called the FAAAA, when those claims fall within the statute’s motor-vehicle safety exception. The case was then sent back for further proceedings. On July 8, 2026, the Seventh Circuit vacated the prior judgment as to Montgomery’s negligent-hiring counts and remanded those claims to the Southern District of Illinois.

That means the Supreme Court did not decide whether C.H. Robinson is liable. It did not award damages. It did not approve a settlement. It did not set a universal broker-vetting checklist. It decided a legal threshold issue: whether Montgomery’s negligent-hiring claims against the freight broker could proceed under state law instead of being dismissed as federally preempted.

As of this July 29, 2026 update, the key practical takeaway is clear: freight brokers may face more litigation risk around carrier selection, and motor carriers should expect tighter review of their public safety records, SAFER profile, authority, insurance, MCS-150 data, inspection history, drug and alcohol compliance, and Driver Qualification File practices.

For carriers, owner-operators, private fleets, and brokers, this case is not just a legal headline. It is another sign that DOT and FMCSA records are becoming part of the commercial trust file used by brokers, insurers, shippers, lawyers, and customers.

Case Background

The case arose from a serious highway crash in Illinois. Shawn Montgomery was severely injured after his tractor-trailer, stopped on the shoulder, was struck by a truck driven by Yosniel Varela-Mojena. Varela-Mojena was driving a load of plastic pots for Caribe Transport II, LLC. C.H. Robinson Worldwide, Inc., a freight broker, had coordinated the shipment.

Montgomery sued the driver, Caribe, and several C.H. Robinson entities. His claims against C.H. Robinson included vicarious liability and negligent hiring or negligent selection. In general terms, the negligent-hiring theory alleged that the broker should not have selected the carrier or driver involved in the shipment. The district court previously ruled in C.H. Robinson’s favor on certain claims, including vicarious liability. The negligent-hiring claims were later dismissed under then-controlling Seventh Circuit precedent that treated those claims as preempted by the FAAAA. The Supreme Court agreed to review the preemption issue.

What the Supreme Court Decided

The Supreme Court decided that negligent-hiring claims of the type Montgomery brought against a freight broker fall within the FAAAA’s safety exception when they concern motor vehicles.

The FAAAA generally preempts certain state laws related to a motor carrier’s, broker’s, or freight forwarder’s prices, routes, or services with respect to transportation of property. But the statute also contains a safety exception that preserves state safety regulatory authority with respect to motor vehicles. The Court held that Montgomery’s claim was saved by that exception. In plain terms, the Court concluded that when a broker hires or selects a motor carrier to move freight by truck, a state-law claim alleging negligent selection can relate to motor vehicle safety.

This matters because freight brokers have often argued that the FAAAA protects them from state-law negligent-selection lawsuits. After Montgomery, that defense is narrower. The ruling does not mean every negligent-hiring case against a broker will succeed. It means the case cannot be dismissed simply because the FAAAA preempts the claim where the motor-vehicle safety exception applies.

What the Supreme Court Did Not Decide

The Supreme Court did not decide the full case on the facts. That distinction is important.

• The Court did not decide that C.H. Robinson was negligent.
• The Court did not decide that C.H. Robinson caused the crash.
• The Court did not decide damages.
• The Court did not award a payout.
• The Court did not approve a settlement.
• The Court did not say brokers are automatically liable whenever a carrier they selected is involved in a crash.
• The Court did not create a federal carrier-vetting checklist.
• The Court decided that Montgomery’s state-law negligent-hiring claims were not barred by FAAAA preemption at that stage.

For the industry, the practical result is expanded litigation exposure. It does not create automatic broker liability.

July 8, 2026 Procedural Update

After the Supreme Court’s May 14 decision, the case returned to the Seventh Circuit. On July 8, 2026, the Seventh Circuit issued a nonprecedential order on remand. The parties asked the Seventh Circuit to send the case back to the district court for further proceedings on Montgomery’s negligent-hiring claims, identified as Counts V and VI. The Seventh Circuit agreed, vacated the district court’s judgment as to those counts, and remanded the case to the Southern District of Illinois.

As of July 29, 2026, the practical status is that the Supreme Court decision is final.

The negligent-hiring claims against the C.H. Robinson defendants have been revived procedurally. The case is back in the district court for further proceedings. There is no public Supreme Court damages award. There is no publicly confirmed settlement or payout located in the sources reviewed.

The case is not over. It has moved into the next stage.

Payout and Settlement Status

As of this July 29, 2026 update, there does not appear to be a publicly confirmed payout, settlement, verdict, or damages award reported in the sources reviewed. That is consistent with the current procedural posture. The Supreme Court allowed the negligent-hiring claims to proceed. The Seventh Circuit then remanded those claims for further district court proceedings. A remand is not a damages award.

This should be stated carefully in any public-facing article or client update. The stronger and more accurate message is:

• Montgomery has reopened the door for negligent-hiring claims against brokers in certain motor-vehicle safety cases.
• It has not yet produced a publicly reported payout in this case.
• It has not established automatic liability.
• It has increased the importance of broker carrier-selection practices and carrier safety documentation.

Why This Case Matters for Freight Brokers

Freight brokers arrange transportation. They do not usually own the trucks, employ the drivers, or operate the equipment. But brokers do select motor carriers. That selection process is now more important. After Montgomery, brokers may face more state-law negligent-hiring and negligent-selection claims when a crash involves a carrier they selected. The broker’s defense may focus less on automatic FAAAA preemption and more on whether the broker acted reasonably under the circumstances. A broker may need to show what it reviewed before tendering the load, such as:

• Carrier authority
• Insurance status
• SAFER profile
• Safety rating
• Inspection history
• Crash history
• Out-of-service history
• Operating status
• MCS-150 date
• Power unit count
• Driver count
• Cargo classification
• FMCSA public records
• Internal vetting notes
• Carrier onboarding records
• Ongoing monitoring process

This does not mean a broker must guarantee every carrier’s safety performance. It does mean that the broker’s carrier-selection process may receive more scrutiny after a serious accident.

Why This Case Matters for Motor Carriers

Although Montgomery is a broker liability case, the decision directly affects motor carriers. If brokers face more negligent-selection exposure, brokers may become more careful when approving carriers. That means carriers should expect more review of public records and safety documentation.

A carrier’s public DOT profile may be reviewed before a load is tendered. A broker may look at SAFER, MCS-150 data, authority, insurance, inspections, crashes, safety rating, out-of-service history, power units, driver count, mileage, and public FMCSA data. If those records are outdated, inconsistent, or incomplete, the carrier may face delays or rejection during onboarding. A legitimate carrier may still lose a load opportunity if the public record creates questions.

Why Public Records Matter More Now

The trucking industry increasingly runs on verification. Before a broker tenders a load, the broker may review the carrier’s safety and operating data. Before an insurer renews coverage, the insurer may review the same public profile. Before a shipper approves a carrier, it may review authority and safety records. Before a freight platform allows a carrier to participate, it may review public and private risk indicators. That makes compliance records business records. Key records include:

• SAFER profile
• MCS-150 filing
• MCS-150 biennial update
• FMCSA profile update
• DOT number update
• USDOT number update
• Operating authority
• MC number
• Insurance filings
• BOC-3 filing
• UCR registration
• Drug and Alcohol Management
• FMCSA Clearinghouse records
• Driver Qualification Files
• ELD and hours-of-service records
• Vehicle maintenance records
• Inspection reports
• Crash records
• Safety rating

A carrier may think these are separate administrative tasks. In practice, they build the carrier’s credibility file.

SAFER, MCS-150, and Broker Review

SAFER is one of the first public records many brokers, insurers, and compliance teams review. If SAFER shows old information, the carrier may need to explain it. Common issues include:

• Outdated address
• Wrong phone number
• Old DBA
• Incorrect power unit count
• Incorrect driver count
• Outdated mileage
• Old MCS-150 date
• Inactive DOT status
• Wrong cargo classification
• Authority mismatch
• Insurance mismatch
• Public profile inconsistency

The MCS-150 is one of the main filings used to update the USDOT company record. The MCS-150 biennial update, DOT biennial update, USDOT biennial update, MCS-150 filing, and SAFER update all connect to the same public compliance picture. After Montgomery, brokers may place more weight on whether the carrier’s public record is clean, current, and consistent.

MOTUS and Account Access

MOTUS also matters in this environment. MOTUS is FMCSA’s newer registration system and account management environment. It changes how carriers manage registration access, company accounts, authorized users, Company Official information, and related federal registration actions.

A carrier that needs to update its MCS-150, reactivate a DOT number, change a company address, update public profile data, or manage operating authority may run into delays if MOTUS access is not set up properly. A carrier should know:

• Who controls Login.gov access
• Who is listed as Company Official
• Whether the USDOT number is linked
• Whether authorized users are current
• Whether old vendors still have access
• Whether former employees should be removed
• Whether the company can file before a deadline
• MOTUS access is now part of public record management.

A carrier may know what needs to be corrected but still be delayed if it cannot access the federal system.

Drug and Alcohol Testing, Clearinghouse, and DQ Files

Broker and insurer review may also reach beyond public profile fields. A serious accident can create questions about driver qualification, drug and alcohol testing, Clearinghouse compliance, supervision, training, hiring, and maintenance. Motor carriers should review:

• DOT drug testing program status
• DOT drug and alcohol testing records
• DOT random testing consortium enrollment
• Owner operator drug testing consortium status
• FMCSA Clearinghouse registration
• Clearinghouse pre-employment query records
• Clearinghouse annual query records
• Clearinghouse consent forms
• Clearinghouse violation procedures
• Clearinghouse return-to-duty records
• Reasonable suspicion training
• Supervisor reasonable suspicion training
• Driver Qualification File records
• CDL and endorsement records
• Medical qualification
• MVR reviews
• Prior employer checks where required
• Post-accident testing procedures
• Return-to-duty process records

These records may not appear fully on SAFER, but they matter in audits, litigation, insurance review, and internal compliance management. A carrier should not wait until after a crash to organize these files.

What Brokers Should Review After Montgomery

Brokers should review their carrier-selection process with legal counsel and compliance advisors. Important items may include:

• Written carrier vetting policy
• Carrier onboarding process
• SAFER review procedures
• Authority verification
• Insurance verification
• Safety rating review
• Out-of-service review
• Crash and inspection review
• Fraud and identity verification steps
• Ongoing carrier monitoring
• Documentation of carrier selection
• Escalation process for questionable carriers
• Record retention policy
• Contract language
• Claims response process
• Insurance coverage
• Internal training

The goal is not to make the broker responsible for every carrier action. The goal is to show that the broker used a reasonable and documented selection process.

What Carriers Should Review After Montgomery

Carriers should assume public records will be reviewed more closely. A practical review should include:

• SAFER profile
• MCS-150 date
• MCS-150 update needs
• DOT number status
• USDOT number update needs
• FMCSA profile update needs
• MOTUS registration
• MOTUS enrollment
• FMCSA MOTUS support needs
• Company Official information
• Authorized users
• Operating authority
• MC number
• Insurance
• BOC-3
• UCR registration
• UCR filing
• UCR renewal
• Power unit count
• Driver count
• Mileage and VMT
• Cargo classification
• Inspection history
• Out-of-service data
• Safety rating
• Drug and Alcohol Management
• FMCSA Clearinghouse
• Driver Qualification Files
• ELD compliance
• Vehicle maintenance records
• New Entrant Safety Audit preparation

A carrier that wants to be approved quickly should make sure the public record does not create avoidable questions.

What Owner-Operators Should Review

Owner-operators may feel the impact first. A one-truck carrier may be legitimate, safe, and experienced, but still face broker friction if the public record is outdated. Owner-operators should review:

• Active DOT number
• MCS-150 biennial update
• SAFER profile
• MOTUS access
• UCR registration
• Operating authority
• Insurance
• BOC-3
• ELD compliance
• Drug and alcohol testing program
• Owner operator drug testing consortium
• FMCSA Clearinghouse status
• Driver Qualification File
• Inspection history
• Maintenance records

A small issue can delay a load. For an owner-operator, that can directly affect revenue.

What Small Fleets Should Review

Small fleets should assign someone to own public record accuracy and driver compliance records. The company should know who is responsible for:

• MCS-150 filing
• SAFER review
• MOTUS access
• UCR filing
• Operating authority
• Insurance coordination
• BOC-3 filing
• Drug and alcohol testing
• Clearinghouse queries
• Driver Qualification Files
• ELD records
• Vehicle maintenance
• Roadside inspection follow-up
• Accident register
• Broker onboarding documents

When no one owns the process, issues tend to appear at the worst time: during a renewal, audit, crash, load onboarding, or roadside inspection.

What Private Fleets Should Review

Private fleets should not ignore this case just because they do not haul freight for hire. Construction companies, utilities, manufacturers, distributors, equipment companies, beverage companies, waste companies, landscaping businesses, and other private fleets may operate commercial motor vehicles with DOT obligations. These companies may need to review:

• DOT number
• MCS-150
• SAFER profile
• UCR
• MOTUS access
• Driver Qualification Files
• DOT drug testing
• Clearinghouse
• ELD and hours-of-service records
• Vehicle maintenance files
• Insurance
• State registrations
• Public-facing safety data

Even when transportation is a support function, the company’s DOT record can still be reviewed by insurers, customers, agencies, and counterparties.

What This Means for the Industry

• Montgomery is part of a larger compliance trend.
• Public records matter more.
• Carrier vetting is becoming more structured.
• Broker onboarding is becoming more data-driven.
• Safety documentation is becoming more commercial.
• FMCSA systems are becoming more connected.
• Driver qualification issues are receiving more attention.
• MOTUS is changing federal registration access.
• Clearinghouse is tied to CDL eligibility.
• UCR remains an annual filing for many operators.
• ELD and hours-of-service records remain part of inspection readiness.
• English proficiency and non-domiciled CDL issues are receiving more scrutiny.

In this environment, carriers and brokers should not treat compliance as a one-time filing exercise.

What FMCSA.com Recommends

FMCSA.com’s practical recommendation is simple: review the file before someone else does.

For brokers, that may mean reviewing carrier-selection policies, documentation, escalation procedures, and insurance. For carriers, that means reviewing DOT and FMCSA records before broker onboarding, insurance renewal, audit preparation, roadside inspection issues, or public record questions. A carrier should confirm that the company’s records are accurate, consistent, and defensible.

That does not mean every issue can be avoided. It does mean preventable record problems should not be the reason a load is delayed, a broker asks questions, an insurer pushes back, or an audit becomes harder.

FMCSA.com Can Help

Montgomery v. Caribe Transport II, LLC is a reminder that compliance records matter beyond the filing itself. Brokers may tighten carrier review. Insurers may ask more questions. Shippers may expect better documentation. Carriers may need cleaner public records before onboarding. Owner-operators and small fleets may feel the impact first.

FMCSA.com helps motor carriers, owner-operators, private fleets, brokers, freight forwarders, construction companies, utility fleets, and commercial vehicle businesses manage DOT and FMCSA compliance paperwork, including MOTUS support, MCS-150 filings, FMCSA biennial updates, DOT number updates, SAFER profile review, UCR registration, DOT activation, DOT deactivation, operating authority, BOC-3 filing, Drug and Alcohol Management, FMCSA Clearinghouse support, Reasonable Suspicion Training, Driver Qualification File review, ELD compliance review, DOT audit checklist preparation, and broader trucking paperwork.

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FAQ: Montgomery v. Caribe Transport II, LLC (2026) – Freight Broker Liability, Carrier Vetting & DOT Compliance