Acknowledging NCBFAA Expertise, FMC Judge

Washington, DC: On November 22, FMC Administrative Law Judge Frederick M. Dolan, Jr., reversed his earlier decision and accepted the NCBFAA 's amicus curiae (friend of the court) brief concerning payment of compensation by ocean carriers to freight forwarders. The case is entitled Docket No. 98-06; The Sea-Land Service, Inc. - - Possible Violations of Sections 10(b)(1), 10(b)(4) and 19(d) of the Shipping Act of 1984.
        The Association was concerned that portions of a preliminary decision issued by Judge Dolan might be construed as prohibiting the current practices by which forwarders receive compensation from steamship lines simply by endorsing the compensation payment checks. This endorsement process has essentially become the method by which many forwarders today seek to comply with the requirements that they put their name, license number and certify that they have provided forwarding services before receiving compensation checks.
        In the original decision appealed by the NCBFAA, Judge Dolan denied the request to file the amicus brief on the grounds of timeliness, unfairly depriving the Bureau of Enforcement its right to participate, and the ability of the defendant to adequately represent itself.
        Judge Dolan reversed himself on all findings.

• He concluded that under the circumstances of this unique case, the NCBFAA did act in a timely fashion and that there was no reason for it to have sought to intervene at an earlier time.
• He also concluded that BOE would not be prejudiced, since it already had the opportunity to cross-examine various witnesses who testified concerning the practices of the industry; indeed, BOE had used the NCBFAA's Certified Ocean Forwarder Study Guide in that cross-examination.
• He found that the NCBFAA "possesses special knowledge, outlook and experience" and that "its voice representing those most likely to be affected by the novel issues here regarding forwarding compensation would be germane, helpful and necessary." Finding that the NCBFAA is "an acknowledged expert association, representing about 1,000 forwarders with extensive experience," he concluded that the Association's views would not be represented by the defendant and "would be welcome and would benefit the record, the presiding Judge and the Commission."

        Headquartered in Washington, D.C., the NCBFAA (members.ncbfaa.org) represents more than 700 member companies - the nation's leading freight forwarders, customs brokers, ocean transportation intermediaries (OTIs) and air cargo agents. Established in 1897 in New York, NCBFAA is the strong, effective national voice of the industry. Through its various committees, counsel, 30 Affiliated Association offices and representatives, the Association maintains a close watch over legislative and regulatory issues that affect its members. It keeps them informed of these and other related issues through its weekly Monday Morning eBriefing, NCBFAA Quarterly Bulletin, and various meetings, seminars and conferences throughout the year.