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

July 18, 2013 - PRLog -- Fort Lauderdale, Florida: July 16, 2013– The Association of Independent Property Brokers & Agents (www.AIPBA.org.) 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”.

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 content 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 1^st 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 (http://www.linkedin.com/groups?viewMembers=&gid=42939...) Association of Independent Property Brokers & Agents ("AIPBA”) is an independent, not-for-profit trade group, a “business league” under IRC 501(C)(6).