Feature, Freight News, Logistics, People, Road

CH Robinson’s Chris Ugarte – US Supreme Court to Hear Broker Liability Case

[ October 16, 2025   //   Gary Burrows ]

By Chris Ugarte

The U.S. Supreme Court has agreed to take up a case that could settle conflicting court interpretations of who can be held liable in roadway-accident lawsuits against the transportation industry.

In Montgomery v. Caribe Transport II LLC, the plaintiff was injured along a highway when a Caribe tractor-trailer veered into him. He sued the driver, the carrier and C.H. Robinson, which had arranged the load Caribe was carrying. C.H. Robinson was dismissed from the case on a several grounds, including that federal law preempts states from holding third-party logistics providers, or 3PLs, liable in such cases.

The intent of the law in question, the Federal Aviation Administration Authorization Act or F4A, was to promote consistency in interstate commerce. While its name suggests aviation, F4A also applies to motor carriers and freight brokers. It prohibits states and courts from imposing laws, regulations or standards that would interfere with the smooth functioning of the transportation industry and supply chains across the U.S.

Still, the law allows states to continue regulating safety “with respect to motor vehicles.” Because 3PLs arrange transportation by connecting shippers and carriers but do not own or operate motor vehicles, C.H. Robinson’s position is that 3PLs should not be held liable in lawsuits where carriers are accused of not safely operating their trucks. This was the law prior to the trucking industry being deregulated in 1980 and continues to be the law today.

In recent years, a series of conflicting rulings in different federal and state courts have cropped up. Despite prevailing in the Montgomery case, C.H. Robinson urged the Supreme Court to address the issue and provide much-needed certainty for freight brokers, carriers and shippers. The court announced Oct. 3 that it granted review.

We welcome the Supreme Court’s decision to hear the Montgomery case. This is a pivotal moment not just for C.H. Robinson, but for the entire logistics industry. For years, we’ve maintained that federal law protects brokers from a patchwork of state-level liability claims. Brokers large or small should not be exposed to multimillion-dollar judgments for the operation of a vehicle they don’t own or maintain and the actions of a driver they didn’t hire, train or supervise. Furthermore, they should not face this threat in one state while being shielded from it in another state.

The court’s decision to take up this issue validates the importance of C.H. Robinson’s position and could bring long-overdue clarity to a fragmented legal landscape. We believe a ruling in favor of federal preemption would reinforce the deregulated marketplace Congress envisioned, strengthen competition and support the seamless movement of goods on which the economy depends.

A date for oral arguments has not been set. The court will likely hear arguments by April 2026, with a decision expected before the term ends in late June 2026.

Chris Ugarte is deputy general counsel of C.H. Robinson, the supply chain logistics provider.

Tags: C.H. Robinson, Caribe Transport II LLC, Chris Ugarte