A landmark opinion issued by the U.S. Supreme Court on Thursday supported the lawsuit of a truck accident victim, enhancing states' ability to regulate the freight brokerage industry in safety matters.

The opinion brings clarity to the judicial system, ruling that the safety provision empowering states means brokers cannot be exempt from negligent selection lawsuits. Federal courts had previously handled this issue inconsistently, and this opinion brings new oversight to brokers while reducing protections for them.

Julie Maurer, a partner at Husch Blackwell, said in a statement to Trucking Dive: "Brokers may now be sued in state court for negligently selecting unsafe carriers. However, the ruling does not mean automatic liability. Brokers who conducted reasonable due diligence in carrier selection should be well positioned to defend against such claims."

The Supreme Court held that while federal law from the 1990s provided some protection to the brokerage industry through a preemption clause, the safety exception applies and does apply in this case.

With the lower court's ruling overturned, the case will be remanded to the U.S. Court of Appeals for further proceedings.

Industry advocates had previously warned that such an outcome could significantly alter the industry landscape of freight carrier selection.

Harry Byrne, a partner at Duane Morris, said in a statement to Trucking Dive: "In the short term, there will be uncertainty about how negligent brokerage claims will play out in practice. Shippers and brokers may tend to choose large, reputable trucking companies to guard against such claims. For motor carriers, they should expect increased scrutiny of their safety ratings and compliance records."

The opinion noted that truck driver Shawn Montgomery, who suffered a leg amputation in the accident that sparked the case, accused C.H. Robinson Worldwide of failing to exercise reasonable care when it hired Caribe Transport, which had a poor safety rating, to perform the transportation.

Dorothy Capers, chief legal officer of C.H. Robinson, said in a statement that safety is a cornerstone of the company, and the company will continue to "operate responsibly, support enhanced federal enforcement, and work constructively with regulators, carriers, and customers to strengthen the national safety system and support safe and reliable transportation across the country."

A concurring opinion written by Justice Brett Kavanaugh (joined by Justice Samuel Alito) noted that the court's ruling "should not be read to mean that brokers will frequently face state tort liability after truck accidents," and that brokers can still successfully defend against state tort lawsuits when they act responsibly.

Maurer of Husch Blackwell, citing Kavanaugh's concurrence, added: "Plaintiffs must still prove that the broker's failure to select a safe carrier caused the accident—a meaningful hurdle that should alleviate concerns about unlimited risk."

But as industry groups and key transportation intermediaries warned, the concurrence noted that the court's ruling could have implications for insurance, risk, and costs. Kavanaugh suggested that the outcome would mean U.S. consumers would bear some of the costs through higher prices.

The Transportation Intermediaries Association quickly expressed disappointment with the outcome. President and CEO Chris Burroughs said in a statement: "While brokers are fully committed to safety and work with federally licensed, reputable motor carriers, this ruling imposes an impossible task on brokers," requiring them to assess the safety of motor carriers even though the federal government has determined that the carrier can operate safely.

Burroughs said: "It's like asking a travel agent to assess the safety of an airline, even though that airline has been licensed by the federal government to fly."

Editor's note: This story has been updated to include legal commentary from Husch Blackwell.