The trucking industry challenged Los Angeles and Long Beach port rules requiring drayage trucking companies to sign concession agreements with strict terms. The court found that many of these agreement provisions—including insurance and other requirements—were not actually about safety, so they likely violated federal law that prevents cities from regulating trucking rates, routes, and services. The court reversed the lower court's decision and sent the case back, meaning the ports' rules face serious legal obstacles.
If a government agency claims rules are for 'safety' but they actually control pricing, routes, or service terms, federal law may block them—even if they're in a concession agreement