The Supreme Court’s decision in Montgomery v. Caribe in May has allowed certain state-law negligent hiring claims to be brought against freight brokers. Previously, freight brokers could appeal to federal law to get negligent hiring claims dismissed before going to trial. Without federal protection, the carriers that freight brokers select will face greater scrutiny for a variety of reasons.

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For one, a party injured in an accident with a motor carrier can argue the broker failed to exercise reasonable care when selecting the carrier. Therefore, carrier selection alone can be the basis of a negligent hiring lawsuit.

Litigation is likely to focus on what information the freight broker had when they chose their carrier. Plaintiffs could try to prove that warning signs about a carrier existed and that the freight broker should’ve been able to identify them.

Since negligent hiring claims are tied directly to motor vehicle safety, information about a carrier’s safety performance will become more relevant. Carriers with a poor safety record are more likely to be passed over by brokers, regardless of the competitiveness of their rates.

Brokers may have a formal carrier-selection policy, but if their employees skip portions of it, they are only giving plaintiffs more material to scrutinize. Freight brokers should establish vetting procedures and apply them consistently with every shipment.

The Montgomery v. Caribe decision increases freight brokers’ liability exposure and requires greater attention to their carrier procurement strategy. As someone who’s worked for a 3PL that uses a nationwide carrier network to ship freight for its customers, I know how important it is to hire reliable transportation providers.

Here are some best practice considerations you can use when strengthening your carrier qualification process.

Safety Performance History

Checking a carrier’s safety performance history is a great indicator of how reliable they are as a transportation provider. The Federal Motor Carrier Safety Administration (FMCSA) recommends resources like DataQs, the Safety and Fitness Electronic Records (SAFER) System, and the Safety Measurement System (SMS).

To use these resources, you’ll need either the company’s name, U.S. Department of Transportation (USDOT) number, or Motor Carrier (MC) number.

Adopt a Carrier Qualification Policy

Adopt a clear written policy that outlines standards for hiring a carrier. The standards you select should become stricter based on the risk associated  with the freight being shipped. You should apply it consistently and update it each year. Document any justified exceptions that you make.

Create Carrier Review Files 

You’ll be working with the same carriers as a freight broker. While one carrier you’ve worked with numerous times might be reliable now, that doesn’t necessarily mean they will be in the future.

Create files for each carrier you work with and document their operating authority, insurance verification, carrier safety record reviews and any other factors you consider during onboarding. Update these files at least every six months.

Train Staff and Audit Compliance

My 3PL is able to choose reliable carriers because they train their staff well. We educate our operations and sales teams on all of our procedures for identifying a reliable carrier. Providing the same guidance to your staff will help them in carrier qualification. Internal audits ensure carrier selection files are documented correctly.

Monitor Carrier Performance

Monitor the performance of your carriers to make sure they’re following the standards you’ve set. If their adherence to safety requirements falters, you could face greater risk if they get into an accident.

In the aftermath of Montgomery v. Caribe, freight brokers and transportation leaders shouldn’t approach carrier qualification as a simple compliance exercise. Instead, they should approach it as a rigorous discipline to help them procure reliable carriers.

Author Bio

At R+L Global Logistics, Jacob E. Lee uses his skills as a Trade Compliance Editor and Writer to create educational content that helps businesses navigate standard truckload, expedited, and hazmat shipping, as well as white glove delivery services. By translating complex transportation topics into straightforward guidance, he helps leaders make informed decisions, avoid costly mistakes, and move freight with greater confidence.