Attorneys for C.H. Robinson asked the U.S. Supreme Court to clarify that freight brokers cannot be held liable at the state level for accidents involving federally licensed motor carriers.
Oral arguments in the case — Montgomery v. Caribe Transport II, LLC — were heard by the Supreme Court on March 4. A replay of the hearing is available from C-Span.
At issue is whether the Federal Aviation Administration Authorization Act (F4A) of 1994 preempts state negligence lawsuits against freight brokers for hiring unsafe motor carriers. This case stems from a 2017 accident and resulted in different judgments from several lower courts.
“A single, uniform federal framework is essential to keeping interstate commerce safe, efficient, and consistent with Congress’s design,” said Dorothy Capers, chief legal officer at C.H. Robinson. “Allowing a patchwork of state tort laws to regulate broker services would undermine that system, increase uncertainty, and disrupt the flow of goods Americans rely on every day.
C.H. Robinson attorneys stated that freight brokers do not own or operate vehicles, and their role is to match shippers with federally approved carriers.
“This is an industry-defining issue and will reshape the logistics industry,” said Matt Reh, a partner at Armstrong Teasdale, which represented C.H. Robinson.
Conversely, attorney Paul Clement argued that Congress never intended to eliminate state tort laws that allow people to sue for harm caused by negligence, and that brokers should do more to ensure they use safe carriers.
A decision from the Supreme Court is expected before the end of June.
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