AIPBA Files Federal Lawsuit To Challenge $75,000 Bond Law

AIPBA Seeks Injunction to Stop Oct 1st Implementation by FMCSA

Jul 19, 2013, 08:30 ET from AIPBA

FORT LAUDERDALE, Fla., July 19, 2013 /PRNewswire/ -- The Association of Independent Property Brokers & Agents ( announced today that it has filed a Federal lawsuit against the $75,000 bond provision of the Moving Ahead for Progress in the 21st Century Act (P.L. 112-141) commonly referred to as "MAP-21" (Case 5:13-cv-00342-WTH-PRL) 

The AIPBA's lawsuit alleges the bond provision is a result of "collusion by other trade groups who effected this law under the guise of 'fighting fraud,' but it really amounts to pulling a sham on the U.S. Government that will hurt small businesses," charges AIPBA President James Lamb.

In announcing the lawsuit, Lamb said:

"We are making good on our promise to AIPBA members and supporters to legally challenge the anti-competitive $75,000 broker bond, which we contend is not related to any legitimate governmental purpose, but is at odds with the National Transportation Policy in 49 U.S.C. § 13101, and AIPBA's substantive due process rights under the Fifth Amendment. Furthermore, the FMCSA has violated the Administrative Procedure Act by not engaging in bona fide rulemaking to set the new bond amount.

"We are seeking justice in Federal Court for the small business players in the trucking industry that would be adversely affected by the arbitrary new bond. We are confident the U.S. District Court will determine this section of MAP-21 is, in fact, unconstitutional… and will issue an injunction shortly, preventing the October 1st implementation by FMCSA."

According to the Federal complaint:

"The government purpose for interstate regulation of brokers includes protection of fair competition for the motor carriers served by brokers, allowing for a variety of price options, and encouraging minority participation in the motor carrier system, but the new $75,000.00 bond amount in amended 49 U.S.C. §13906 will significantly limit or eliminate these policies. Therefore, the new $75,000.00 bond amount in amended 49 U.S.C. §13906 is not rationally related to a legitimate government purpose. Therefore, because the $75,000.00 bond amount is arbitrary and not rationally related to a legitimate government purpose in light of the stated national transportation policy guiding interstate transportation regulation in 49 U.S.C. § 13101, and because amended 49 U.S.C. §13906 will eliminate a property right held by the AIPBA membership suddenly on October 1, 2013, and without fair warning, amended 49 U.S.C. §13906 is in and of itself an unconstitutional violation of AIPBA's substantive due process rights under the Fifth Amendment and the APA."

The AIPBA is represented in this matter by Derek Schroth, Esq., of BOWEN RADSON SCHROTH, P.A., out of Eustis, Florida.

The 1,800-member Association of Independent Property Brokers & Agents ("AIPBA") is an independent, not-for-profit trade group, a "business league" under IRC 501(C)(6). Its mission is to promote the common business interests and improve the business conditions for small and mid-sized independent property brokers, as defined in 49 CFR Part 371, who are authorized to conduct business by the Federal Motor Carrier Safety Administration ("FMCSA") and enjoy annual revenues of $14m or less, and the duly appointed agents of such property brokers. The AIPBA seeks to encourage ethical business practices among members. It also attempts to lobby legislatures, influence the activities of regulatory bodies, and, in general, influence public policy in a direction favorable to the group's members. AIPBA produces conferences and provides educational programs for members and business networking opportunities among members and the transportation industry-at-large.

AIPBA contact: James Lamb (954) 253-5049; Email:

Media contact: Abby Blake 561-750-9800 x229;