NFIB has submitted an amicus brief to the United States Supreme Court in the case of Shawn Montgomery v. Caribe Transport II, LLC, et al., addressing the issue of whether freight brokers can be held liable under state law for a motor carrier’s negligent hiring practices. The organization joined with the U.S. Chamber of Commerce and other business groups to highlight the significance of freight brokers within modern shipping operations.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, commented on the matter: “Businesses of all sizes use freight brokers to coordinate the shipment of their products. These brokers function as middlemen, helping connect businesses with trucking companies and arranging shipments. While their importance in transporting goods cannot be overstated, their role remains limited. Making freight brokers liable for the actions of the carriers they contract with will increase costs for brokers, the dependent small businesses, and consumers.”
The amicus brief makes two main arguments: first, that federal law—the Federal Aviation Administration Authorization Act—preempts state tort claims against brokers; and second, that holding brokers liable for negligent hiring would add substantial costs to the shipping industry without enhancing safety. The brief asserts that those involved in selecting motor carriers do not have effective means to monitor them and points out that roadways are already subject to significant regulation.
The NFIB Small Business Legal Center is currently engaged in more than 40 cases at various levels of federal and state courts nationwide as well as at the U.S. Supreme Court.
