May 1, 2019 Written by Christopher M. Leddy, Esq.
NEW JERSEY SUPREME COURT WEIGHS IN ON THE VALIDITY OF LEASES IN THE MOTOR CARRIER INDUSTRY AND WHO AN OWNER IS UNDER TRUTH IN LENDING REGULATIONS
In a published opinion, on April 25, 2019, the Supreme Court of New Jersey affirmed the Appellate Division’s holding (affirming the trial court’s holding) in the case of Gonzalo Chirino v. Proud 2 Haul, Inc., which involved a violation of the Federal Truth in Lending (“TIL”) regulations in the motor carrier industry. Specifically, the Court struck down the defendants’ strategy of having a third-party lease trucks from owner-operators, and in turn, having that third-party assign all services and equipment it leased from the owner-operators to defendants, stating such an arrangement violates the TIL regulations (49 CFR 376.1 to .42.).