Feds Shut Down South Dakota Carrier For Refusing to Comply with Safety Regs

November 23, 2008

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The U.S. District Court for South Dakota granted a request of the Federal Motor Carrier Safety Administration, the U.S. Department of Transportation and the Department of Justice to immediately halt the operations of Action Carrier Inc., of Sioux Falls, S.D.,
because it repeatedly refused to comply with federal motor carrier safety regulations.

"We have no tolerance for operators that attempt to continue operating while potentially endangering the traveling public," said John Hill, Federal Motor Carrier Safety administrator. "We will continue to work with the DOT and DOJ to halt the operations of any carriers that attempt to continue operating after their authority has been revoked."

Federal District Judge Lawrence L. Piersol granted DOT's request last Tuesday for a temporary restraining order preventing Action Carrier from continuing to operate in interstate commerce after its operating authority was revoked by FMCSA because the carrier did not have the necessary liability insurance. Federal law requires interstate motor carriers to obtain operating authority from FMCSA in order to conduct operations, to have minimum levels of public liability insurance, and to file proof of the insurance with FMCSA.

Action Carrier has a history of continuing to operate for extended periods after revocation of its authority for failing to meet FMCSA's insurance requirements. Over the last year, FMCSA initiated three separate civil penalty proceedings for operating without insurance and operating after revocation of authority. The most recent revocation order issued by FMCSA was on Oct. 6. Following that order, FMCSA and state authorities documented at least 16 additional incidents of illegal transportation in interstate commerce by Action Carrier despite the latest revocation order.

The court scheduled a hearing on a preliminary injunction for Nov. 25.

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