Broker Liability After Montgomery: Supreme Court Says Freight Brokers Can Now Be Sued for Carrier Selection Failures

The U.S. Supreme Court’s unanimous decision in Montgomery v. Caribe Transport II, LLC has significantly altered the legal landscape for freight brokers, transportation intermediaries, insurers, and litigants nationwide. In a ruling that will likely reshape trucking litigation for years to come, the Court held that state-law negligent hiring claims against freight brokers are not preempted…

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Freight Broker Liability and Federal Preemption: The Circuit Split Over Negligent Selection Claims Under 49 U.S.C. § 14501(c)

The Hidden Legal Fault Line in Freight Brokerage In the trucking industry, freight brokerage often appears straightforward on the surface—connecting shippers with carriers to move freight from point A to point B. Yet beneath that operational simplicity lies a steadily expanding legal fault line, where a single carrier-selection decision can become the center of multi-million-dollar…

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When A Pallet Becomes A Package: Lessons from Federal Insurance Co. v. MSC Mediterranean Shipping

In May of 2025, the United States District Court for the Southern District of New York issued a decision in Federal Insurance Co. v. MSC Mediterranean Shipping Co. S.A., that highlights the continuing significance of liability limitations in cargo cases and underscores why subrogation professionals must scrutinize every bill of lading.[1] Chatham Imports, Inc. purchased…

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Join MWL For A Live Webinar On Subrogation Magic: Creating Something Out of Nothing – MCS-90 Claims Against Uninsured Operators

Trucking insurers issuing motor carrier policies that contain MCS-90 Endorsements may be overlooking significant subrogation and recovery opportunities. MCS-90 subrogation is an under-utilized means of recovery that can significantly increase an insurance carrier’s bottom line. Understanding the history behind and developing a working knowledge of MCS-90 Endorsements is essential for any adjuster or subrogation professional…

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Trucking Subrogation And The MCS-90 Endorsement

The MCS-90 Endorsement is an endorsement that is found in insurance policies issued to trucking companies operating interstate. This endorsement allows the trucking company to comply with certain government mandated public financial responsibility regulations. Specifically, the federal government mandates that trucking companies operating interstate comply with their financial responsibility obligations by having an insurance policy…

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Train Wreck Damages Cap May Impede Subrogation Recovery In Rail Disaster Cases

The Amtrak Cascades 501 departed Seattle on its inaugural voyage on the morning of December 18, 2017. Just after 7:30 a.m., the train derailed at high speed in DuPont, Washington, causing three fatalities, dozens of injuries, and widespread destruction. Government reports state that the derailment occurred because of excessive speed and emphasized that operators of the…

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SUBROGATION MAGIC: Creating Something Out Of Nothing – Subrogating MCS-90 Endorsements

In 2010, researchers at the University of Michigan hypothesized that it is theoretically possible to conjure particles from a complete vacuum under the right circumstances. Performing such a feat in the world of subrogation might seem improbable, but subrogation theory has become subrogation law where MCS-90 Endorsements are concerned. Have you ever spent countless hours…

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