What does 49 CFR 386.18 (Payment of the claim) require?

Short answer

49 CFR 386.18 requires payment of the full amount claimed to be made at any time before issuance of a Final Agency Order, which constitutes an admission of liability by the respondent of all facts alleged in the Notice of Claim. Payment must be served upon the Field Administrator within 30 days following service of the Notice of Claim.

The rule says

"Payment of the full amount claimed may be made at any time before issuance of a Final Agency Order and will constitute an admission of liability by the respondent of all facts alleged in the Notice of Claim, unless the parties agree in writing that payment shall not be treated as an admission." (49 CFR 386.18(a))

"If respondent elects to pay the full amount as its response to the Notice of Claim, payment must be served upon the Field Administrator at the Service Center designated in the Notice of Claim within 30 days following service of the Notice of Claim." (49 CFR 386.18(b))

In plain English

This rule means that if a respondent chooses to pay the full amount claimed, they must do so within 30 days of receiving the Notice of Claim. By paying the full amount, the respondent is essentially admitting to all the facts alleged in the Notice of Claim, unless they have a written agreement with the other party stating otherwise. If the respondent fails to pay the full amount within the 30-day timeframe, they may be considered in default and the Notice of Claim may become the Final Agency Order.

What to do

• Review the Notice of Claim to determine the amount claimed and the deadline for payment.
• Decide whether to pay the full amount claimed or contest the claim.
• If paying the full amount, serve payment upon the Field Administrator within 30 days following service of the Notice of Claim.
• Ensure that payment is made in accordance with the requirements of 49 CFR 386.18.