- 10 - they wished, provided they removed the placards of any other company. They could accept or reject loads as they wished. They could earn as much or as little as wanted because they were free to use the equipment as much or as little as they wanted. It is clear from this record that the leases only served the carriers’ needs to comply with governmental regulations. This regulatory scheme was put into place to protect the public by preventing common carriers from evading liability for accidents caused by the independent drivers. See Zamalloa v. Hart, 31 F.3d 911, 913-914 (9th Cir. 1994); Empire Fire & Marine Ins. Co. v. Guaranteed Natl. Ins. Co., 868 F.2d 357, 362 (10th Cir. 1989); see also Prestige Cas. Co. v. Michigan Mut. Ins. Co., 99 F.3d 1340, 1342-1343 (6th Cir. 1996) (I.C.C. regulations that require every lease entered into by an I.C.C. licensed carrier contain a clause stating that the authorized carrier maintains “exclusive possession, control, and use of the equipment for the duration of the lease” promulgated to curb the abuse of carriers using leased vehicles to avoid safety regulations and to address public confusion as to who was financially responsible for the vehicles); 49 C.F.R. secs. 376.11 and 376.12 (1997). It is also understandable that the leases served the practical purpose of ensuring adequate insurance coverage. A carrier which engages the services of many owner-operators would have an administrative headache monitoring the adequacy (andPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011