Fitzpatrick v. Morgan Southern, Inc.

261 F. Supp. 2d 978, 2003 U.S. Dist. LEXIS 7365, 2003 WL 2012447
CourtDistrict Court, W.D. Tennessee
DecidedApril 21, 2003
Docket02-2090 Ml/Bre
StatusPublished
Cited by14 cases

This text of 261 F. Supp. 2d 978 (Fitzpatrick v. Morgan Southern, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fitzpatrick v. Morgan Southern, Inc., 261 F. Supp. 2d 978, 2003 U.S. Dist. LEXIS 7365, 2003 WL 2012447 (W.D. Tenn. 2003).

Opinion

ORDER GRANTING DEFENDANT’S MOTION FOR RECONSIDERATION

MCCALLA, District Judge.

Before the Court is Defendant’s Motion for Reconsideration of Court’s Order Denying Defendant’s Motion to Dismiss and/or for Summary Judgment, filed February 12, 2003. Defendant asserts that no private right of action for damages exists for violations of 49 U.S.C. § 14704(a)(2), and, even if Congress did create a private right of action, Plaintiffs claims are barred by the two-year statute of limitations contained in 49 U.S.C. § 14705(c). Plaintiff responded in opposition on February 24, 2003. For the following reasons, the Court GRANTS Defendant’s motion for reconsideration.

I. Background

This case concerns a truck lease between Plaintiff and Defendant. Plaintiff asserts that the parties’ contract does not comply with the Federal Highway Administration’s Truth-in-Leasing Regulations, 49 C.F.R. §§ 376.11, 376.12. Plaintiffs statutory claim for damages under 49 U.S.C. § 14704(a) asserts that Defendant violated these regulations by failing to pay interest on Plaintiffs escrow account, failing to pay Plaintiff his full percentage as specified in the lease, failing to pay Plaintiff the compensation specified in the lease, failing to provide Plaintiff with copies of documents, failing to permit Plaintiff the *979 opportunity to examine certain documents, and failing to account for and document certain charge-backs. Additionally, Plaintiff claims that Defendant breached the parties’ lease agreement in violation of Georgia law.

Both parties agree that Plaintiff leased two trucks to Defendant in July of 1991. Plaintiff subsequently terminated the lease on one of the trucks in January 1993 and terminated the lease on the second truck in June 1993. In March 1997, the parties entered into a new lease agreement and Plaintiff began to work as an owner operator with Defendant. On September 20, 1999, Plaintiff terminated this second lease agreement. Plaintiff filed suit against Defendant on February 13, 2002.

In Defendant’s original motion, Defendant asserted that Plaintiffs claims for violations of the Truth-in-Leasing Regulations were barred by the statutes of limitations contained in 49 U.S.C. §§ 14705(b), (c), or (d). Defendant noted in a footnote, but did not specifically argue, that one court has held no private right of'action for damages even exists for violations of 49 U.S.C. § 14704(a)(2). The Court believed Defendant conceded the existence of a private right of action for damages under § 14704(a)(2) and held that 28 U.S.C. § 1658(a) established a four-year statute of limitations for this cause of action. Therefore, with respect to Plaintiffs claims arising under § 14704(a) the Court granted Defendant’s motion to dismiss as to claims arising before February 13, 1998 and denied Defendant’s motion as to claims arising after February 13,1998.

Defendant filed this motion for reconsideration requesting that the Court specifically address whether a private right of action for damages exists under § 14704(a)(2). Defendant argues that Congress did not establish a private right of action for damages and, therefore, Plaintiff should have sought an injunction compelling the Secretary of Transportation to initiate proceedings against Defendant or brought a state law breach of contract action (as Plaintiff did in Count Two of the Complaint). In the event the Court finds such a cause of action exists, Defendant also newly argues that, due to a scrivener’s error, the provision in question was inadvertently enacted as § 14704(a)(2) when it should have been enacted as part of § 14704(b), to which a two-year statute of limitations is applicable under § 14705(c). Using this two-year statute of limitations, Defendant argues that Plaintiffs claims in Count One are time-barred.

• Plaintiff asserts, as it did in the December 26, 2002 response to the motion to dismiss, that § 14704(a)(2) provides for a private right of action for damages and that the applicable statute of limitations period is four years pursuant to 28 U.S.C. § 1658(a).

II. Private Right of action

49 U.S.C. § 14704 provides:

(a) In general.—

(1) Enforcement of order. — A person injured because a carrier or broker providing transportation or service subject to jurisdiction under chapter 135 does not obey an order of the Secretary or the Board, as applicable, under this part, except an order for the payment of money, may bring a civil action to enforce that order under this subsection. A person may bring a civil action for injunc-tive relief for violations of sections 14102 and 14103.
(2) Damages for violations. — A carrier or broker providing transportation or service subject to jurisdiction under chapter 135 is liable for damages sustained by a person as a result of an act or omission of that carrier or broker in violation of this part.

*980 Despite the fact that subsection (a)(2) does not contain the magic language “a person may bring a civil action”, the Court defers to the Eighth Circuit’s well-reasoned decision in Owner-Operator Indep. Drivers Assoc., Inc. v. New Prime, Inc., 192 F.3d 778 (8th Cir.1999), which held that a plaintiff may bring a private right of action for damages under § 14704(a)(2). 1

In New Prime, the Eighth Circuit held that § 14704(a)(2) creates a private right of action for damages for violations of the Truth-in-Leasing Regulations. In arriving at this decision, the Court relied upon the legislative history of the Interstate Commerce Commission Termination Act of 1995, Pub.L. No. 104-88, 109 Stat. 808 (1995) (the “ICCTA”). The House Report states in part:

The bill transfers responsibility for all the areas in which the ICC resolves disputes to the Secretary [of Transportation] (except passenger intercarrier disputes). The Committee does not believe that DOT should allocate scarce resources to resolving these essentially private disputes, and specifically directs that DOT should not continue the dispute resolution junction in these areas. The bill provides that private parties may bring actions in court to enforce the provisions of the Motor Carrier Act.

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Bluebook (online)
261 F. Supp. 2d 978, 2003 U.S. Dist. LEXIS 7365, 2003 WL 2012447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitzpatrick-v-morgan-southern-inc-tnwd-2003.