Sioux Falls company's trucks ordered off the road
Posted: Saturday, November 22, 2008
SIOUX FALLS, S.D. (AP) -- A federal judge has ordered a Sioux Falls trucking company to pull its rigs from the road because it's not carrying liability insurance, according to a court order.
Action Carrier Inc. already was on probation because of earlier violations.
U.S. District Judge Lawrence Piersol on Thursday granted U.S. Transportation Secretary Mary Peters' motion for a temporary restraining order and preliminary injunction against the motor carrier.
The order prevents the company from operating without a liability insurance policy that covers bodily injury and property damage and without operating authority from the Federal Motor Carrier Safety Administration.
Piersol wrote that any Action Carrier vehicles in transit could go to the next scheduled stop so the cargo could be secured, but the vehicle was to then stay put.
He scheduled a hearing on the preliminary injunction for Tuesday at the Sioux Falls federal courthouse.
The FMCSA requires motor carriers to have adequate financial responsibility, which includes liability insurance, and that proof must be on file with the agency, federal prosecutors wrote in the complaint.
FMCSA was notified Aug. 22 that Action Carrier's insurance would be canceled effective Sept. 26, which did happen, so on Oct. 6 the agency revoked Action Carrier's operating authority registration because it didn't prove it had insurance, they wrote.
Action Carrier's registration has not been reinstated and it hasn't proven adequate financial responsibility, but it continues to run its trucks, the complaint states.
Highway authority inspections were done Oct. 25 in Missouri, Oct. 27 in Kansas and Oct. 29 in Wisconsin.
"These continued operations violate the federal motor carrier statutes and regulations, contravene the regulatory authority of the FMCSA, and expose the public to a risk of bodily injury or property damage without recourse for compensation," it states.
Action Carrier's owner, Michael Walsh, did not immediately return a telephone call seeking comment.
In October 2005, he and the company were fined and given probation for breaking federal transportation laws.
Walsh pleaded guilty to harassing and consequently hindering a safety inspector from filing a report. He also pleaded guilty on behalf of Action Carrier to causing a truck driver to falsify trip log entries.
Walsh was sentenced to five years probation and was under home confinement for the first six months of the term. He also was fined $2,000 and ordered to pay more than $126,000 in restitution.
Action Carrier also was placed on probation for five years and fined $200,000.
Action Carrier Inc. already was on probation because of earlier violations.
U.S. District Judge Lawrence Piersol on Thursday granted U.S. Transportation Secretary Mary Peters' motion for a temporary restraining order and preliminary injunction against the motor carrier.
The order prevents the company from operating without a liability insurance policy that covers bodily injury and property damage and without operating authority from the Federal Motor Carrier Safety Administration.
Piersol wrote that any Action Carrier vehicles in transit could go to the next scheduled stop so the cargo could be secured, but the vehicle was to then stay put.
He scheduled a hearing on the preliminary injunction for Tuesday at the Sioux Falls federal courthouse.
The FMCSA requires motor carriers to have adequate financial responsibility, which includes liability insurance, and that proof must be on file with the agency, federal prosecutors wrote in the complaint.
FMCSA was notified Aug. 22 that Action Carrier's insurance would be canceled effective Sept. 26, which did happen, so on Oct. 6 the agency revoked Action Carrier's operating authority registration because it didn't prove it had insurance, they wrote.
Action Carrier's registration has not been reinstated and it hasn't proven adequate financial responsibility, but it continues to run its trucks, the complaint states.
Highway authority inspections were done Oct. 25 in Missouri, Oct. 27 in Kansas and Oct. 29 in Wisconsin.
"These continued operations violate the federal motor carrier statutes and regulations, contravene the regulatory authority of the FMCSA, and expose the public to a risk of bodily injury or property damage without recourse for compensation," it states.
Action Carrier's owner, Michael Walsh, did not immediately return a telephone call seeking comment.
In October 2005, he and the company were fined and given probation for breaking federal transportation laws.
Walsh pleaded guilty to harassing and consequently hindering a safety inspector from filing a report. He also pleaded guilty on behalf of Action Carrier to causing a truck driver to falsify trip log entries.
Walsh was sentenced to five years probation and was under home confinement for the first six months of the term. He also was fined $2,000 and ordered to pay more than $126,000 in restitution.
Action Carrier also was placed on probation for five years and fined $200,000.
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