Negligent hiring (broker liability theory)

Negligent hiring in the broker context is a state-law tort claim alleging that a freight broker selected a motor carrier the broker knew or should have known was unsafe.

The plaintiff is typically a third party injured in a crash involving the carrier's truck. The legal question is whether the broker exercised reasonable care in selecting the carrier. Reasonable care is judged against documented vetting practices and industry standards.

Damages can include medical costs, lost wages, pain and suffering, and in wrongful-death cases, the value of the decedent's life. Punitive damages are available in some jurisdictions but typically capped.

Why this matters for freight brokers

Negligent hiring is now the primary litigation theory plaintiff's lawyers use against brokers post Montgomery v. Caribe. The defense rests on documented vetting at the moment of booking.

Related terms

• FAAAA (Federal Aviation Administration Authorization Act of 1994) — The FAAAA is the 1994 federal statute that historically preempted most state-law claims related to a freight broker's prices, routes, or services, until the Supreme Court's 2026 Montgomery v. Caribe Transport ruling carved out negligent-hiring claims under a safety exception.
• Contingent auto liability insurance — Contingent auto liability is third-party bodily injury and property damage coverage that responds when a motor carrier's primary auto policy fails to pay a claim arising from a load arranged by the broker.
• Additional insured (endorsement) — Additional insured is an endorsement on an insurance policy that extends coverage from the named insured to a third party, typically required by contract between a shipper, broker, or carrier.

Sources

• Montgomery v. Caribe Transport II opinion