Where the plaintiffs, independent truck owner-operators, have filed a putative class action based upon regulations that govern 49 U.S.C. 14102 and 14704(a), a motion to dismiss should be denied, as the plaintiff owner-operators may bring a private right of action for damages under 49 U.S.C. 14704(a)(2).
“Plaintiffs are independent truck owner-operators, who filed this putative class action against Defendants, purporting to bring federal claims against Defendant based upon regulations that govern 49 U.S.C. 14102 and 14704(a). Plaintiffs also ask the Court to exercise supplemental jurisdiction over state-law breach of contract and fraud claims under Michigan law. The matter is currently before the Court on Defendants’ Motion to Dismiss, brought under Fed. R. Civ. P. 12(b)(1), for lack of subject matter jurisdiction. Defendants contend that this Court lacks subject matter jurisdiction over Plaintiffs’ purported federal claims and, as a result, it cannot exercise supplemental jurisdiction over the state claims either.
“As explained below, the Sixth Circuit has not addressed the issue of whether a private right of action for damages exists under 49 U.S.C. 14704(a)(2). The Eighth Circuit has ruled that such actions can be pursued and many courts, including district courts within the Sixth Circuit, have followed that decision. This Court will Court follow the Eighth Circuit’s lead and allow Plaintiffs’ federal claims to proceed in this case. But the Court declines to exercise supplemental jurisdiction over Plaintiffs’ state-law breach of contract and fraud claims in this putative class action and dismisses those claims without prejudice.
“Plaintiffs’ Complaint asserts that ‘Violations of DOT regulations permit a private right of action pursuant to 49 U.S.C.14704(a)(2).’ ... Plaintiffs’ brief makes clear that this is a civil action for damages brought pursuant to 49 U.S.C. 14704(a)(2), for Defendants’ alleged violation of implementing regulations promulgated under the statute commonly referred to as the Truth-in-Leasing regulations.
“Here, the parties disagree as to whether this Court may exercise subject matter jurisdiction over a private action for damages brought pursuant to 49 U.S.C. 14704(a)(2).
“Both parties acknowledge that the Sixth Circuit has not squarely addressed the issue of whether a private right of action for damages exists under 49 U.S.C. 14704(a)(2).
“Defendants’ position is that private rights of action under federal law must be created by Congress. They contend that Sections 14102 and 14704(a)(1) and (2) ‘authorize federal courts only to enforce orders from the Surface Transportation Board or the Secretary of Transportation and to enjoin carriers from violating statutory rights,’ and that they do not authorize a civil action for monetary damages. They rely on the language of the statutory text and contend that a district court in Louisiana reached the correct result in an unpublished case, C&H Trucking, Inc. v. New Orleans Trucking , 2016 WL 3854438 (E.D. La. 2016).
“Again, Plaintiffs cannot direct the Court to any binding authority to support their position. But Plaintiffs direct the Court to a non-binding Eighth Circuit case ( Owner-Operator of Ind. Drivers Assoc. v. New Prime, Inc. , 192 F.3d 778 (1999)), and additional decisions that followed New Prime ’s lead. This position relies more on practical considerations and legislative history, rather than the actual text of the statutes at issue.
“Although it is conceivable that the Sixth Circuit, when presented with the issue, could depart from New Prime and all of the case law that followed in its wake over the past two decades, the Court believes that is unlikely. The Court shall follow New Prime and the other decisions from within the Sixth Circuit, reject this ground for relief, and rule that the plaintiff owner-operators may bring a private right of action for damages under 49 U.S.C. 14704(a)(2).”
Fetinci v. Rayco Logistics LLC; MiLW 02-107956, 12 pages; U.S. District Court for the Eastern District of Michigan; Cox, J.
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