The US Supreme Court’s latest ruling confirms that freight brokers may face state-law negligent hiring claims—placing renewed focus on carrier vetting and risk management.
Ron Leibman, chair of McCarter’s Transportation, Logistics & Supply Chain Management Practice, speaks with Law360 on the ruling, which confirms that federal law does not preempt state-law negligent hiring claims against brokers.
As Ron explained, “What the industry was asking for was a get-out-of-jail-free card, but the industry has known it has to do proper due diligence.”
The decision resolves a circuit split and reinforces the importance of robust carrier vetting practices, likely increasing scrutiny—and litigation risk—around broker due diligence.