The US Supreme Court ruled late Thursday morning that freight brokers can facestate-law negligent hiring claimswhen they hire unsafe trucking firms that later cause crashes.

FreightWaves founder Craig Fuller responded to the ruling on X, saying,

OMG, this is the most pivotal moment in trucking history since Deregulation. It could be an extinction event for 30-50% of all freight brokers.

OMG, this is the most pivotal moment in trucking history since Deregulation.It could be an extinction event for 30-50% of all freight brokers.Matt Lefler and I will be on the air at 11AM ET to discuss. Live, streaming on X.https://t.co/sc3eKgWV3S

In other words, this decision will raise liability costs across the freight industry but could force out unsafe trucking firms, some of which have hired illegals.

Landmark win for trucking safety this morning.The Supreme Court rules UNANIMOUSLY against the broker that helped put the illegal alien who hit Dalilah Coleman on the road.As a result of this decision, trucking brokers can be liable for negligently giving loads to illegal…https://t.co/0pYntFxiDx

The case,Shawn Montgomery v. Caribe Transport II, US, No. 24-1238,centers onC.H. Robinson, which arranged a shipment carried by Caribe Transport II. The carrier's driver struck Shawn Montgomery's tractor-trailer in Illinois, causing severe and permanent injuries. Montgomery alleged that C.H. Robinson should have known Caribe posed safety risks given its poor federal safety rating.

Justice Amy Coney Barrett, writing for the High Court, said theFederal Aviation Administration Authorization Actdoes not shield brokers from such claims because states retain authority over safety "with respect to motor vehicles." The ruling reverses the Seventh Circuit and sends the case back for further proceedings.

Justice Brett Kavanaugh, joined by Justice Samuel Alito, said the case was close but agreed that Congress did not intend to leave brokers in a "black hole" with no meaningful safety accountability. He also acknowledged that the ruling could lead to higher litigation, insurance, and due diligence costs, which may ultimately raise shipping costs.

The Trump administration urged the justices to rule against Montgomery's claim, saying that allowing liability for freight brokers under state tort law would create regulatory nightmares for the nation's freight transport industry.

Source: ZeroHedge News