Supreme Court Hears Arguments in Broker Liability Case

The U.S. Supreme Court heard oral arguments on Wednesday in the case of *Montgomery vs. Caribe*, which is expected to settle a longstanding question around freight brokers' liability for the actions of the carriers they hire. According to *FreightWaves*, the case centers on whether the "safety exception" in the 1980 Staggers Rail Act, which allows shippers to sue brokers for negligence in selecting carriers, applies to all broker-carrier relationships or just those where the broker has a "substantial control" over the carrier. The case was brought by the family of a woman killed in a crash involving a truck operated by a carrier hired by a freight broker. The family argues the broker should be liable for negligently selecting the carrier, while the broker contends the safety exception only applies when it has substantial control over the carrier's operations. "This is a hugely important case for the freight brokerage industry," said John Kingston, editor-at-large at *FreightWaves*. "A broad interpretation of the safety exception could open brokers up to much greater liability, fundamentally changing their business model." The Supreme Court's ruling, expected by the end of the court's current term in June, will provide clarity on brokers' legal obligations and liability risks when hiring carriers. Industry groups have closely watched the case, as it could have wide-ranging impacts on the $800 billion U.S. freight brokerage sector.