The FMCSA recently reported that they shut down an Ohio trucking company for violating agency regulations. The regulations that were allegedly violated revolved around safety issues. This comes in a string of company shutdowns that the agency has announced in a relatively short period of time.
The shutdown of the company came after the agency performed a spot check of the company’s trucks. Allegedly, the company’s fleet of trucks were operating in violation of out-of-service orders and a total of 43 safety violations. Many of the issues involved braking system issues, defective brake parts, and other equipment problems.
Legal Authority to Shut Down Companies
The FMCSA is authorized to inspect and shut down trucking companies and their fleets through a regulation. That important regulation is found in 49 C.F.R § 386.72, known as the Imminent Hazard regulation. This regulation has its origin in 49 U.S. Code § 521 and other safety statutes related to trucking companies.
This all-important regulation has the power to wreak havoc on a company and its finances. The agency is authorized to shut down a company when in their judgment the company is an imminent hazard because continued operation of the company would be substantially likely to cause:
- serious illness;
- severe personal injury; or
- substantial endangerment to health, property, or the environment.
So anytime the FMCSA inspects a company and finds that operation of that trucking company could result in one of these things, they will likely shut the company down. And in addition to these factors, the FMCSA can also shut a company down when the agency feels like transportation of hazardous material poses an imminent hazard to the public.
At this juncture, a company shut down is just the beginning. In addition to being shut down, your company will face fines that will need to be paid before beginning work again, and a company executive could even face criminal penalties. Of course, a company can challenge this agency action, and that may be the best option for a company, but it will be a legal battle.
Plan for Future
In this situation, the best defense is staying prepared and taking action, if necessary. This means that your company needs a plan and scheme to stay in compliance with federal safety regulations. This can be a daunting task given the number and complexity of regulations that every trucking company faces, but it is absolutely necessary if you want your company to stay on the road.
One of the most important steps you can take to plan for the future and take action is to have a partner with valuable legal, regulatory experience. At Anderson and Yamada, P.C. we are the legal partner that your company deserves and needs to make a plan for the future. Our experience is invaluable when it comes to ensuring that your company stays on the right side of federal regulations and that your company stays on the road. Contact us for all your trucking company’s legal needs.