On March 24, 2010, the U.S. Supreme Court heard oral argument in the Regal- Beloit case to decide whether the Carmack Amendment or the Carriage of Goods by Sea Act (COGSA) governs the inland leg of an intermodal import shipment moving under a “through” bill of lading. The Court’s decision should clarify several issues related to intermodal transportation of international shipments, including whether motor carriers can rely on COGSA’s $500 per-package cargo liability limitation. The issue arises because Carmack typically governs rail and motor carrier liability for cargo loss, damage, and delay,...

Few areas of transportation law are evolving so rapidly as that pertaining to 3PL liability. Long a relative safe-harbor against potential liability, brokers and freight forwarders are increasingly under attack on a number of fronts based on several theories of law whereby a 3PL can potentially be held liable for personal injury and property loss damages arising from a motor carrier’s negligence. Because of the publicity surrounding several high-dollar judgments recently obtained against 3PLs, the plaintiff’s bar seems increasingly prone to name 3PLs as parties to such cases in its never- ending...

An Early Review of CSA 2010 Signals An Advance Warning The Federal Motor Carrier Safety Administration (FMCSA) is field testing its Comprehensive Safety Analysis (CSA) 2010 Program in six states. Once implemented nationally (anticipated in mid-2010), CSA 2010 will effectively replace both SafeStat and the current safety rating methodology process. As such, CSA 2010 is one of the most important FMCSA initiatives in recent years. Early returns from those domiciled in the pilot states indicate that motor carriers operating under satisfactory safety ratings and acceptable SafeStat scores may have...

Electronic Logging – The Future May Be Now Last November, the FMCSA reversed its long-standing policy against the use of Global Positioning Satellite (GPS) and other advanced technology for Hours of Service (HOS) audit and enforcement purposes. As a result, FMCSA investigators are now regularly demanding that the detailed data taken from such technology be turned over for purposes of verifying the accuracy of driver logs. Failing to produce such data is considered a critical violation by the FMCSA, automatically resulting in a downgraded safety rating and, most likely, significant monetary fines. Of...

Industry Continues to Measure Potential Impact of the Obama Administration. Although the pressing nature of the country’s economy means some new legislative and regulatory initiatives may be delayed, significant changes are likely. Many potential initiatives would impact employers in all industries – transportation included. New legislation will look to change union elections The Employee Free Choice Act (EFCA) a/k/a “card check” was introduced on March 10. EFCA as now written likely will not pass the Senate. Nevertheless, maintaining a watchful eye on future developments is crucial because...