TLA

Tenth Circuit Finds Against Motor Carrier for Violation of the Federal Leasing Regulations

In Fox v. TransAm Leasing, Inc., filed October 18, 2016, the U.S. Tenth Circuit Court of Appeals found that the defendant motor carrier violated the DOT’s truth-in-leasing regulations by requiring the plaintiff truckers, who lease their trucks and driving services to the motor carrier, to pay the carrier $15 each week to use the carrier’s satellite communications system. The applicable regulation, 49 C.F.R. sec. 376.12, precludes a motor carrier from requiring a trucker “to purchase or rent any products, equipment, or services from the authorized carrier as a condition of entering into the lease arrangement.” The Court affirmed partial summary judgment for the truckers, upholding the district court’s determination that the carrier violated the regulation. That ruling supports the truckers’ requests for injunctive and declaratory relief. Because the truckers failed to present any evidence of their damages resulting from the usage fee, the Court reversed the district court’s decision to deny the carrier’s summary judgment on the truckers’ claim for damages. Click here​ for decision.

Tenth Circuit Finds Against Motor Carrier for Violation of the Federal Leasing Regulations