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

Two major trucking organizations have filed a joint request for an en banc hearing before the Fifth Circuit Court, expressing alarm over the recent decision regarding Penske Logistics. The American Trucking Associations (ATA) and Truckload Carriers of America (TCA) argue that a lower court ruling, which overturned favorable decisions for Penske and its affiliate, should be reconsidered at a full court hearing.

The case revolves around a complex supply chain chain involving multiple defendants and plaintiffs, known as Crane vs. Liberty Lane. The decision, which overturned favorable lower court rulings for PTM (Penske Transportation Management), has raised concerns about Penske Logistics' potential liability. The ATA/TCA contend that the Fifth Circuit's decision, based on the Supreme Court's Montgomery ruling, extends Penske's statutory employment liability to situations where it is unaware of the actions of other carriers involved in the supply chain.

ATA and TCA's amicus brief emphasizes that the Fifth Circuit's interpretation of Federal Leasing Regulations conflicts with the reality of double brokering, where a carrier is unaware of the actions of subsequent brokers. The brief argues that the federal regulations are designed to apply only when a carrier leases equipment from a non-authoritative company, and not when a carrier operates under its own authority.

The ATA/TCA's request for an en banc hearing aims to have the Fifth Circuit review this interpretation and potentially reverse the decision that holds Penske Logistics liable for accidents caused by entities beyond its direct control.