AIPBA Seeks to Resume Lawsuit on Broker Bond

The Association of Independent Property Brokers and Agents asked a federal district court Oct. 15 to remove its stay on the group’s lawsuit against the Federal Motor Carrier Safety Administration.

AIPBA is suing FMCSA over an increase in the required minimum for a freight broker’s bond to $75,000 from $10,000. Federal Magistrate Philip Lammens paused the case Oct. 1 when it appeared that FMCSA would be closed as part of the federal government shutdown.

FMCSA remained opened, though, so AIPBA is asking for the stay to be lifted, as FMCSA continues to roll out the rule that became effective Oct. 1. Brokers are supposed to demonstrate to the agency they have increased their bond level by Oct. 31. Those brokers failing to do so will be notified by the agency starting Nov. 1 and then will have 30 days to fix the problem.

AIPBA President James Lamb also said that his group agrees with the U.S. Attorney’s office that the case should be transferred to the U.S. Court of Appeals in Atlanta from a district court in Ocala, Fla. Appellate courts typically review federal rules rather than district courts, and part of AIPBA’s complaint said FMCSA wrote the bond rule improperly.