Marsh Montgomery Ruling White Paper

A recent whitepaper examines risk management implications following the ruling on Montgomery v. Caribe Transport II, LLC where the U.S. Supreme Court has narrowed the FAAAA pre-emption shield for freight brokers.

The advisory is for any entity operating under broker authority granted by the Federal Motor Carrier Safety Administration (FMCSA), including freight brokers, motor carriers that operate brokerages, freight forwarders, 3PLs, brokers of household goods, and any other entity that arranges shipments in the United States. It is also applicable to shippers who hire motor carriers directly.

(The Montgomery decision does not change the legal framework directly applicable to Canadian freight brokers; however, given the integrated nature of the North American insurance market and the prevalence of cross-border operations, Canadian freight brokers should take note of this guidance. Considerations may differ for specialized operations (e.g., cross-border, passenger, or hazmat transportation), and legal duties, regulatory requirements, and insurance responses may vary by role and shipment type.)