NEWS FLASH

 

May 12, 2009

(http://www.joc.com)

Court Grants ATA’s Clean-Trucks

Injunction

LA-LB cannot require employee drivers, enforce parking rules

The ports of Los Angeles and Long Beach can continue to require that motor carriers sign

concession agreements in order to operate in the harbor, but a federal court ruled that the

ports can not require the use of employee drivers or enforce off-street parking

requirements as part of their clean-trucks programs.

U.S. District Court Judge Christina A. Snyder granted the American Trucking

Associations the preliminary injunction it was seeking regarding some of the concession

requirements which ATA charges violate federal pre-emption statutes.

However, Judge Snyder also granted certain requests of the ports by refusing to enjoin

the concession programs in their entirety. Those requirements that further the causes of

truck safety and port security will be allowed to stand, at least until the case is heard on its

merits later this year.

In reaching her decision, Judge Snyder followed closely the opinion of the U.S. Court of

Appeals for the 9th Circuit, which on March 20 stated that certain provisions in the Los

Angeles-Long Beach clean-trucks programs violate federal pre-emption statutes regarding

the regulation of interstate commerce.

Judge Snyder's ruling on Monday was preliminary. After hearing oral arguments from both

sides, she said she would issue her final ruling, probably by the end of the week.

Monday's decision is considered a victory for the ATA because one of its primary

arguments involving the clean-trucks programs is that a port can not require that harbor

trucking companies hire drivers as direct employees.

The employee-driver mandate was promoted by the Teamsters Union, which is attempting

to organize harbor truckers nationwide. Under the current model in effect at most ports,

drivers are owner-operators. Unions by law are prohibited from organizing independent

contractors, but they may organize employees.

The trucking concession contracts that Los Angeles and Long Beach require contain a

number of provisions. Judge Snyder granted a preliminary injunction against seven of

those requirements that she said have no relation to motor carrier safety or port security.

In addition to the employee driver mandate, Judge Snyder enjoined concession provisions

that would give preference to existing drivers and would require that motor carriers prove

to the ports that they have financial capability of operating in the harbor.

The order enjoins other provisions in the concession requirements, including a

requirement that motor carriers provide off-street parking for trucks.

The ports are also enjoined from charging application fees and annual per-truck fees to

motor carriers that sign up for the ports' Drayage Truck Registry. That point generated

quite a bit of discussion at Monday's hearing. It is uncertain what level of fees are needed

to cover the ports' out-of-pocket expenses for enforcing safety requirements. That issue

will most likely be addressed when the case is heard on its merits.

The ports will, however, be allowed to enforce eight additional requirements contained in

the concession agreements. Those requirements deal primarily with truck safety and port

security, such as requiring maintenance programs for vehicles and driver credentials

under the federal Transportation Worker Identification Credential program.

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