“Safety is not a checkbox.”
The American Bus Association (ABA), the leading voice in North America’s charter bus, motorcoach, group travel and tourism industries, says the Supreme Court’s unanimous decision in Montgomery v. Caribe Transport II, LLC reinforces a principle the professional motorcoach industry has long understood: the choice of carrier must also be a safety decision.
While the case involved freight trucking, the Supreme Court’s reasoning reaches beyond freight. The Court held that federal transportation law does not automatically bar negligent-selection claims when motor vehicle safety is at issue. That principle can apply to any party involved in arranging transportation, including brokers and others who select a motor carrier. In practical terms, choosing who operates the trip may carry legal consequences if reasonable care is not used in selecting the carrier.
“Safety is not a checkbox. It is the foundation of professional motorcoach transportation,” says Fred Ferguson, President and CEO of the American Bus Association. “This ruling reinforces that everyone involved in arranging transportation has a responsibility to understand who is operating the vehicle, whether that company is properly credentialed, and whether it has made the investments required to move people safely.”
“Transparency is not optional. Customers should know whether they are dealing with a broker, a direct carrier, or another intermediary.”
Fred Ferguson, ABA
“Brokers play an important role in this industry,” says Ferguson. “ABA must now serve an elevated role in making sure those partnerships prioritize reputable operators, not companies that cut corners. Our goal is to deepen our work with those who arrange motorcoach transportation so the marketplace rewards companies committed to safety, maintenance, and operational excellence.”
ABA also said the decision highlights the need for greater transparency in the broker segment. The public, regulators, and customers must have clear lines of sight into who arranges a trip and who actually operates the bus.
“There is growing concern that some brokers and online marketers are blurring the line between arranging transportation and operating transportation,” says Ferguson. “That confusion can harm consumers, disadvantage reputable operators, and weaken roadway safety. Transparency is not optional. Customers should know whether they are dealing with a broker, a direct carrier, or another intermediary.”
ABA said it will continue working with its members and partners to advance stronger standards, clearer disclosures, and shared accountability across the transportation chain.
The Association is also developing ABA Certified, a forthcoming credentialing platform focused on helping individuals strengthen their craft, deepen their professional knowledge, and earn credentials that elevate safety, maintenance, compliance, customer service, and operational excellence across the industry.
“At its core, ABA Certified is about people getting better at their work,” says Ferguson. “When safety directors, maintenance leaders, compliance professionals, and customer-facing teams develop their skills and earn meaningful credentials, the entire industry becomes stronger and safer.”
At the same time, ABA warns that the ruling may be used by aggressive plaintiffs’ attorneys seeking to expand liability and pursue larger verdicts.
“The motorcoach industry is already operating in a litigation and insurance environment that is stretching many companies to the limit,” continues Ferguson. “Nuclear verdicts and rising insurance costs are not abstract policy concerns. They are existential threats to an industry that provides essential mobility, supports tourism, responds in emergencies, and moves more than 40 billion passenger miles each year.”
The ABA Foundation is currently conducting a comprehensive insurance market review to better understand the pressures facing the industry and to guide future policy and operational recommendations.
“Reform is needed,” says Ferguson. “We need a system that protects the traveling public, rewards responsible operators, improves transparency, and recognizes the severe pressure that unchecked litigation and insurance instability are placing on private motorcoach companies.”