Friday, May 15, 2026

Freight Brokers Lose, Citizens Win

 Here's the bare-bones of the case.

 The Supreme Court of the United States handed down its decision in Montgomery v. Caribe Transport II, LLC, this morning. It was unanimous. Nine to zero. Justice Amy Coney Barrett wrote the opinion. Justice Brett Kavanaugh filed a concurrence, joined by Justice Samuel Alito, saying the case was closer than the majority opinion suggested, but agreeing with the result....

Freight brokers are intermediaries between shippers and truckers or trucking companies.  For a fee, a broker will find truckers/companies who can transport Product A from Place B to Place Z.

Until yesterday, those brokers were essentially held harmless if they directed freight to a trucker or trucking company with a crappy safety record--or with a crappy driving record.  Now with the ruling, and in combination with the Trump crackdown on CDL mills and totally un-qualified illegals, this will begin a huge swing in the trucking marketplace.

Legal experts say the ruling increases the importance of formal, documented carrier-vetting procedures.

Among the steps attorneys say brokers should consider:

  • Reviewing FMCSA safety ratings and inspection histories
  • Monitoring out-of-service and crash rates
  • Documenting how safety red flags are evaluated
  • Standardizing carrier-selection procedures
  • Maintaining clear records showing why a carrier was approved

Texas-based law firm Galloway recommended brokers use “clear, objective vetting criteria” and carefully document how safety concerns are handled.

IOW, brokers not only have to document their own 'safety protocols', they will be requiring the same from truckers/companies.  This is likely to be hard on independents (owner-operators) because more paperwork, but it will have an impact on such as Ego, a company with a long track record of safety problems.

Maybe it will also have the effect of eliminating foreign ownership of trucking companies--which is usually associated with safety problems.

So yes.  SCOTUS struck a blow for protecting people who drive legally and safely. 

 

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