2 key trucking groups in filing raise alarm on Penske decision fallout

Two prominent trucking groups, the American Trucking Associations (ATA) and the Truckload Carriers of America (TCA), have filed a joint amicus brief with the Fifth Circuit Court of Appeals, requesting an en banc hearing to reconsider a recent decision. This decision, which remanded a case back to the U.S. District Court for the Southern District of Texas, has raised concerns within the trucking industry.

The case at hand, Crane vs. Liberty Lane, involves a complex supply chain and has significant implications for liability within the industry. The ATA and TCA, represented by the Scopelitis law firm, argue that the Fifth Circuit's decision regarding Penske Logistics, a carrier within the Penske Transportation Solutions network, is misguided.

The appellate court overturned lower court rulings favorable to Penske Logistics and its affiliate, Penske Transportation Management (PTM), citing the Supreme Court's Montgomery precedent. The conflict arises from the interpretation of the Federal Aviation Administration Authorization Act (F4A) and its impact on brokers. The amicus brief emphasizes that the liability imposed on Penske Logistics by the Fifth Circuit would have been the same regardless of the load's path through the supply chain, and that the Federal Leasing Regulations do not apply to agreements where an authorized motor carrier provides delivery services under its own authority.