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Supreme Court ruling raises legal risks for freight broker hiring practices

The Supreme Court unanimously ruled that freight brokers can be sued for negligent hiring, overturning the FAAAA preemption defense. Industry reactions vary: TIA says it is not a doomsday event, but small carriers may be eliminated due to liability risks; TD Cowen expects compliant capacity to benefit; insurance costs may rise 3 to 5 times. The case is remanded to the Seventh Circuit, and future legal conflicts will still take years to evolve.

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