A federal appeals court denied a request to postpone enforcement of a Federal Motor Carrier Safety Administration rule that would increase to $75,000 from $10,000 the minimum amount of a surety bond the businesses must carry.
The brokers’ motion filed with the 11th Circuit based in Atlanta was denied by three judges Nov. 26. It was part of the ongoing legal action between the Association of Independent Property Brokers and Agents and FMCSA over a rule that took effect Oct. 1.
Brokers were supposed to demonstrate to FMCSA that they increased their bond levels by Oct. 31. Firms that failed to do so were to be notified by the agency in November and given 30 days to fix the problem. Once the 30-day period ends in December, the brokerage companies can lose their licenses.
AIPBA argued that the rule creates “substantial threat of irreparable injury” to association members. FMCSA was represented by Department of Justice lawyers.