Major business groups have filed a friend-of-the-court brief supporting freight brokers in a Supreme Court case involving a 2018 trucking accident. The case, Shawn Montgomery v. Caribe Transport II, LLC, et al., centers on a crash where a broker-hired trucker hit Montgomery’s car, leading to injuries. The Seventh Circuit Court ruled that federal law prevents such state lawsuits against brokers.
The U.S. Chamber of Commerce, Business Roundtable, National Association of Wholesaler-Distributors, National Federation of Independent Business, and National Retail Federation are among the entities supporting freight brokers in the Supreme Court case. These groups represent businesses across various sectors and advocate for policies that promote economic growth and job creation.
The amicus brief argues that federal law shields brokers from state tort claims related to trucking accidents. The Federal Aviation Administration Authorization Act of 1994 prohibits states from passing laws that impact a broker’s pricing, routes, or services for moving property by truck. Negligent hiring lawsuits against brokers directly affect their core services of connecting shippers with carriers and negotiating deals.
The brief contends that negligent hiring claims “relate to” broker services and fall under federal preemption laws. It argues that expanding the safety clause in the FAAAA to cover broker hiring claims would increase costs for freight trucking without improving safety. Upholding preemption would allow brokers to focus on logistics rather than lawsuits, maintaining efficiency in the trucking industry.
If the Supreme Court rules in favor of upholding preemption, brokers will benefit from a consistent regulatory environment, avoiding a patchwork of state rules that could drive up insurance costs and fees. The case is set for oral arguments in early March, with the support of major business organizations like the U.S. Chamber of Commerce potentially influencing the outcome.
Read more at Yahoo Finance: Business groups back freight brokers in Supreme Court trucking liability fight