What does 49 CFR 386.14 (Reply) require?
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Short answer
49 CFR 386.14 requires a respondent to serve a reply to the Notice of Claim in writing within 30 days, choosing one of three options: paying the full amount, contesting the claim, or seeking binding arbitration.
The rule says
"Respondent must serve a reply to the Notice of Claim in writing within 30 days following service of the Notice of Claim." (49 CFR 386.14(a))
"The respondent must reply to the Notice of Claim within the time allotted by choosing one of the following: (1) Paying the full amount asserted in the Notice of Claim in accordance with 386.18 of this part; (2) Contesting the claim by requesting administrative adjudication pursuant to paragraph (d) of this section; or (3) Seeking binding arbitration in accordance with the Agency's program." (49 CFR 386.14(b))
In plain English
The respondent must choose one of three options: pay the full amount, contest the claim, or seek binding arbitration. Failure to respond within the deadline can result in a default judgment, which can have serious consequences. In practice, this means that motor carriers and other respondents must have a system in place to promptly respond to Notices of Claim and make a strategic decision about how to proceed.
What to do
- Review the Notice of Claim carefully to understand the allegations and proposed penalty.
- Choose one of the three options for responding to the Notice of Claim: pay the full amount, contest the claim, or seek binding arbitration.
- Ensure that the reply is served in writing within the 30-day deadline.
- Consider seeking legal counsel to help navigate the response process and make a strategic decision about how to proceed.
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