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What the Supreme Court's Freight Broker Ruling Means for You

  • 5 hours ago
  • 2 min read

On May 20, 2026, transportation and logistics experts from SPG Logistics, Scopelitis, and Cottingham & Butler gathered for a webinar to break down the Supreme Court's landmark ruling in the Montgomery case and what it means for freight brokers, carriers, and shippers. With over 550 industry professionals in attendance, the discussion covered the history of FAAAA preemption, what the court actually decided, and the practical implications for day-to-day brokerage operations. Here are the top three takeaways from the conversation:


  1. The Supreme Court ruling eliminates FAAAA preemption as a defense for brokers in interstate negligent hiring cases. The Montgomery decision means brokers can no longer get negligent hiring claims dismissed early through legal motions — they'll now have to defend these cases all the way through trial, significantly increasing litigation costs and settlement values.


  2. Brokers must establish and strictly follow a reasonable carrier vetting policy. At minimum, this means verifying active motor carrier authority, securing a broker-carrier contract, confirming adequate insurance, and consistently checking safety data. Critically, whatever standards you set must be followed 100% of the time — exceptions to your own rules are exactly the kind of evidence that will hurt you in court.


  3. The ruling creates both risk and opportunity across the supply chain. Smaller brokers and carriers face the greatest risk, insurance costs are expected to rise, and capacity may shrink as some carriers exit the market. At the same time, carriers with strong safety records and higher insurance limits will be in high demand are expected to thrive. Since most brokers and carriers do not carry high limits, excess coverage becomes a significant competitive differentiator, especially for carriers looking to build direct shipper relationships in an environment where liability exposure is top of mind.


Click this link to see where the FAAAA preemption decisions were made by the federal district and circuit court systems.








Webinar Presenters



Greg Feary

President & Managing Partner, Scopelitis, Garvin, Light, Hanson & Feary


A national thought leader in transportation law and one of the most recognized voices in the industry. Greg serves as Vice Chair of the ATA/NAFC Risk Management & Insurance Advisory Committee, Chairman of the Lawyer's Subcommittee of the ATA Insurance Task Force, and previously served as ATA's national transportation insurance counsel.



Nathaniel Saylor

Partner, Scopelitis, Garvin, Light, Hanson & Feary


A go-to attorney for freight brokers, forwarders, and 3PLs on contracts, regulatory compliance, and carrier selection issues. Nathaniel serves on the Transportation Intermediaries Association (TIA) Programs Committee and is a regular speaker on broker-carrier contracting.



Justin Olsen

Chief Risk Officer – Liability & Casualty, SPG Cargo & Logistics


35 years of transportation law experience, including more than a decade as VP of Legal & Risk at England Logistics. Justin serves on the TIA Board of Directors, has chaired TIA's In-House Legal Committee, and was directly involved in the TIA amicus brief work on Montgomery v. Caribe Transport.



Scott Cornell

Chief Risk Officer - Crime and Theft Specialist, SPG Cargo and Logistics


A nationally recognized authority on transportation risk, cargo theft, and supply chain security. Scott chairs the Transported Asset Protection Association (TAPA), Americas Chapter, serves on the TIA Cargo Fraud Task Force, has testified before Congress on cargo theft, and was recently named one of Insurance Business' 100 Best Insurance Leaders in the USA.


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