Tale Lites Issue 70

SCOTUS Rules on Broker Liability - Be Advised on Fake Government Scams

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🚨 Supreme Court Rules Brokers are Liable

This is the biggest piece of news to hit the industry over the last few days, and in my opinion the biggest legal decision made in the trucking industry since the Motor Carrier Act of 1980. Until now, brokers were not liable if they hired an unsafe carrier.

In a unanimous 9-0 decision in Montgomery v. Caribe Transport II, LLC, the Court ruled that freight brokers can be sued under state negligent-hiring laws if they fail to use reasonable care when selecting a carrier. The decision effectively removes one of the industry’s strongest legal defenses and could dramatically reshape how brokers vet carriers moving forward.

At the center of the case was truck driver Shawn Montgomery, who lost his leg in a devastating crash involving a carrier hired through broker giant C.H. Robinson. The question before the Court was whether federal law, specifically the Federal Aviation Administration Authorization Act (FAAAA) shielded brokers from liability tied to carrier selection.

Justice Amy Coney Barrett, writing for the majority, explained that while the FAAAA generally preempts state laws tied to a broker’s “price, route, or service,” it also contains a safety exception preserving state authority over motor vehicle safety matters. According to the Court, requiring brokers to use ordinary care when selecting carriers clearly falls within that exception.

In plain English: if a broker hires an unsafe carrier and that decision contributes to a crash, they can now be held accountable in court.

Justice Brett Kavanaugh, joined by Justice Samuel Alito, agreed with the outcome while acknowledging the case was a close call. However, Kavanaugh emphasized a major issue that likely influenced the Court: there is currently very little federal oversight governing how brokers choose carriers.

Without state tort liability, Kavanaugh warned, brokers would operate in what he described as a “black hole” of safety regulation.

The decision does not mean brokers are automatically liable anytime a crash occurs. The standard remains “reasonable care.” But attorneys will now be allowed to examine whether brokers reviewed publicly available safety data before assigning freight.

That includes:

  • FMCSA safety ratings

  • Crash history

  • Out-of-service percentages

  • Inspection records

  • Carrier authority age

  • Prior enforcement actions

Every link in the chain is expecting a wave of negligent hiring lawsuits to follow this ruling, especially in crashes involving carriers with known safety problems. Plaintiff attorneys have reportedly been preparing these cases for years while waiting for the Supreme Court to settle the preemption debate.

Insurance could also be the next thing to shift with this decision. Most freight brokers carry general liability coverage, but many may not have policies designed to handle catastrophic negligent hiring verdicts. With nuclear verdicts already destroying motor carriers in recent years, brokers could now face similar exposure.

The ruling may also impact:

  • 3PLs

  • Digital freight platforms

  • Freight forwarders

  • Shippers directly selecting carriers

The Court’s logic was pretty broad: if a company plays a role in selecting the carrier, it may share responsibility for that choice.

For brokers, the best thing they can start doing moving forward is documenting everything, but drivers and motor carriers should also be doing the same thing.

Carrier vetting procedures, safety reviews, internal policies, and decision making records may now become critical evidence in court. Brokers who cannot show a documented process could face serious challenges defending themselves in future litigation.

I personally think Justice Kavanaugh is correct in his assessment. I’m not a legal expert so it was hard for me to simply lean hard one way or the other, but my gut has me saying this is really the right call. Just because an MC is active doesn’t mean you don’t vet who you hire for jobs. I think everyone has taken for granted just how much freight we move in the US at lightning speeds, and this is a lesson for everyone that haste does create waste, especially when it comes to safety

Read more here

What do you think? For Driver Submissions, questions, and comments contact me at: [email protected] or Text me directly at 423-275-2444

Truck Throwback

What do you think about this old iron?

🏛️ Government Looking to Stop Fake Gov’t Notices

Truck drivers and small carriers may finally get some protection from the flood of fake government notices invading their mailboxes.

Lawmakers in Washington have introduced new legislation aimed at cracking down on scammers posing as federal agencies to trick trucking companies into paying unnecessary fees.

The proposed bill, called the Stop Scamming Truckers Act, was introduced by Representatives Marie Gluesenkamp Perez and Dave Taylor on May 14.

If passed, the legislation would force private companies sending DOT-related solicitations to clearly disclose that they are not affiliated with the federal government.

A lot of truck drivers, especially O/O and small fleets, have received “official looking” letters claiming they need to pay for DOT filings, registration updates, or compliance services. This can be deceiving, especially to newer companies because many of those services are either free or can be completed directly through the government at little to no cost.

The letters often mimic federal documents using similar formatting, seals, and urgent language designed to pressure trucking companies into paying hundreds of dollars.

It’s an easy wrench to be thrown at truckers because they’re already bogged down with paperwork and compliance requirements, and then they actually have to run the business of booking and hauling freight. So when an official looking document slides across your desk, you want to solve the issue immediately!

Under the proposed law, companies sending DOT-related solicitations would be required to clearly state:

“This communication is from a private company. We are not the Federal Motor Carrier Safety Administration, the Department of Transportation, or any other Federal Government Agency, and we are not affiliated with the United States Government.”

The disclosure would also need to:

  • Appear on the first page of the communication

  • Be displayed prominently in at least 12-point font

  • Be visible immediately in digital messages without scrolling

The legislation would also prohibit companies from:

  • Using logos or branding that resemble federal agencies

  • Implying payment is required to maintain a DOT number

  • Suggesting they are connected to the government when they are not

Companies violating the law could face lawsuits ranging from $500 to $5,000 per violation.

The bill highlights a growing frustration across the trucking industry as scammers continue targeting carriers with fake compliance notices, bogus insurance filings, and fraudulent registration demands.

I remember getting these e-mails all the time, and letters in the mail, I still get them. Hopefully this easily goes through, but for now always double check!

📩 What are your thoughts?
Reply to this email or text (423) 275-2444 

🩺 Health Tip of the Week: Don’t Ignore Magnesium

One of the most overlooked vitamins/minerals for truck drivers and busy professionals is magnesium. However, many people are deficient without realizing it, especially if they consume a lot of caffeine, energy drinks, processed foods, or deal with chronic stress.

Magnesium helps support:

  • Muscle recovery

  • Better sleep quality

  • Stress management

  • Heart health

  • Energy production

  • Reduced muscle cramps

Signs you might be low in magnesium:

  • Trouble sleeping

  • Muscle twitching or cramps

  • Fatigue

  • Headaches

  • High stress or anxiety

  • Constant soreness after workouts

Good natural sources include:

  • Pumpkin seeds

  • Almonds

  • Spinach

  • Avocados

  • Dark chocolate

  • Black beans

Many people also benefit from taking magnesium glycinate at night because it’s easier on the stomach and may help improve sleep quality. As always, talk with your doctor before starting supplements, especially if you have medical conditions or take medications. These small improvements in recovery and sleep can make a massive difference in energy while at work over the road, and for anyone’s long term health!

Partner Post of the Week

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Long Time Trucker Writes Book on the State of American Trucking Industry

Is there a quiet war being waged against America’s truck drivers?

That’s the argument behind End of the Road: Inside the War on Truckers, a new book by longtime driver and writer Gord Magill. Magill claims the industry that once represented freedom and independence is being attacked on all fronts, from government regulations, in cab surveillance technology, corporate consolidation, and the push toward autonomous trucks.

God Magill has decades of experience including 4 seasons on ice roads in Canada, road trains in Australia, and over the road in the US. He argues that drivers today face tighter control, shrinking margins, and a future where human truckers may be pushed out altogether.

If you drive a truck, have driven, or have a family member who drives then this book is a must read.

You can order the book HERE and use the promo code 4TRUCKERS20 for a discount at checkout!

🎸 Little Texas Headlining Walcott Truckers Jamboree

Country band Little Texas will headline the 48th Annual Walcott Truckers Jamboree on July 10 at 7 PM at the Iowa 80 Truckstop — known as the World’s Largest Truckstop.

The three-day event (July 9–11) will feature live music, a Super Truck Beauty Contest, Antique Truck Display, Trucker Olympics, pork chop cookout, fireworks, and more.

Best part: Admission and parking are free. 🚛🇺🇸 

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