Paying Fine Is Admission of Guilt or Liability, FMCSA Says in Proposed Rules Clarification

Federal regulators last week took initial steps to clarify procedures that have created uncertainty as to whether motor carriers, intermodal equipment providers, brokers and freight forwarders can pay a civil fine for violations without admitting guilt or liability.

In a notice of proposed rulemaking filed in the Federal Register on Dec. 13, the Federal Motor Carrier Safety Administration said it is clarifying its “rules of practice” to inform carriers and brokers that when they pay a fine for a violation, they are admitting guilt and losing their right to appeal.

“Payment waives respondent’s opportunity to further contest the claim,” said FMCSA, which is accepting public comment until Jan. 12.

The proposal noted that carriers have in some cases argued that payment with written objection terminates the proceeding without an admission of liability.

“Allowing unilateral termination of a proceeding by a respondent without an admission would permit carriers with abundant financial resources to repeatedly violate the agency’s regulations without running the risk of facing escalating civil penalties despite a history of noncompliance with the regulations,” the proposal stated.

In a 2010 case, a hearing officer noted that the current rules were “silent” on whether payment of the proposed civil penalty constituted an admission of the alleged violations. In the case, the administrator acknowledged the regulatory text of the regulation in question is “is less than clear regarding the consequences of full payment with written objection and recommended that the meaning of this paragraph be clarified through rulemaking.”

FMCSA said it would be contrary to the agency’s enforcement policy, which requires that it assess the maximum statutory penalty for each violation of law by any person who is found to have committed a pattern of violations.

The proposal also establishes procedures for issuing out-of-service orders to motor carriers, intermodal equipment providers, brokers and freight forwarders it determines are reincarnations of other entities with a history of failing to comply with regulatory requirements. The procedures would provide for administrative review before the out-of-service order takes effect, FMCSA said.

The agency also proposed new procedures for consolidating agency records of reincarnated companies with their predecessor entities.