David Kash, IADC Transportation Committee Newsletter – U.S. Federal Leasing Mandates

Jan 19, 2021

Phoenix Partner, David Kash, authors a compelling article related to U.S. FEDERAL LEASING MANDATES.

Congress regulates leases between federally regulated motor carriers and independent truckers. Congress initially regulated leases between independent truckers and motor carriers through the Interstate Commerce Commission (ICC) until 1996 when it abolished the agency and transferred responsibility to the federal Department of Transportation.  See: Owner-Operator Independent Drivers Association, Inc. v. New Prime, Inc., 339 F. 3d 1001, 1006 (8th Cir. 2003).  When Congress abolished the ICC it chose to transfer enforcement directly to truckers by providing truckers with a private cause of action against motor carriers for violating the regulations.  See: 49 U.S.C. §14704 (a); See also: Owner-Operators v. Swift Transportation, 632 F. 3d 1111, 1113 (9th Cir. 2011). Congress tasked the DOT with further regulating these leases.  It does so through the Federal Motor Carrier Safety Administration and its Truth-In- Leasing regulations,  49 C.F.R. 0Part 376.

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