Refrigeratedtransporter 1386 Penske Rental Trucks

Penske Logistics petitions Supreme Court for review

Jan. 7, 2015
Penske Logistics has filed a petition seeking to have the United States Supreme Court review the Ninth Circuit Court of Appeals decision in the matter of Dilts et al v Penske Logistics LLC and Penske Truck Leasing Co LP.

Penske Logistics has filed a petition seeking to have the United States Supreme Court review the Ninth Circuit Court of Appeals decision in the matter of Dilts et al v Penske Logistics LLC and Penske Truck Leasing Co LP.
The crux of the case is whether a long-standing federal transportation law that seeks to promote lower rates and better service by ensuring that rates and services are determined by competitive market forces rather than a patchwork of varying state laws preempts California’s state laws requiring mandatory meal and rest breaks.
California’s meal and rest break laws directly impact the routes, services, and prices of trucking companies, such as Penske, operating in California. Penske maintains the Federal Aviation Administration Authorization Act of 1994, which prohibits states from enacting laws related to prices, routes, or services of a motor carrier, preempts California meal and rest break laws as applied to motor carriers.
In 2011, the US District Court ruled in Penske’s favor on this issue, but the Ninth Circuit Court of Appeals later overturned this decision in 2014. Penske argues that the Ninth Circuit’s decision is at odds with Supreme Court decisions in other preemption cases.
Penske is seeking Supreme Court review because this case has sweeping impacts on how the trucking industry operates and disrupts competitive market forces.
“Safe drivers are a top priority at Penske, and we already encourage our drivers to take their necessary safety rest and meal breaks while driving their routes and serving our customers’ delivery needs,” said Michael Duff, senior vice-president and general counsel for Penske. “This case is about federal law preempting state laws that relate to rates, routes, and services offered by trucking companies. We’re asking the Supreme Court to resolve this issue for our company and the trucking industry. The Ninth Circuit’s decision significantly impacts the entire transportation industry as well as the flow of commerce and ultimately impacts consumers.”
Penske is being represented in the Supreme Court appeal by Latham  & Watkins LLP of Washington DC and Scopelitis, Garvin, Light, Hanson & Feary PC of Indiana.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Trucking KPIs on Autopilot: Optimize Performance with a TMS

Discover 7 essential KPIs that will revolutionize your fleet's performance. From cost-per-mile to shipment volume, learn how a TMS can put your profits on autopilot. Unlock the...

Unlock the Road to Ultimate Fleet Safety with our Infographic

Discover how to improve your fleet safety program with our interactive infographic, "The Journey to Fleet Safety". Learn essential steps and best practices to reduce accidents...

Commercial telematics: Boosting safety, productivity and cost-efficiency

As 2G and 3G networks retire, commercial telematics will increasingly focus on 4G and 5G cellular connectivity. The next generation of telematics hardware includes telematics ...

The Role of AI in Transportation Audits, Compliance, and Risk Management

AI Enhancement versus AI Replacement? That is the question many fleets and suppliers are facing nowadays with the continued trend of technological advancements. Learn why Fleetworthy...