Therefore, motor carrier companies took advantage of common law that insulated them from liability by entering into trip leases. Federal statutes and regulations have now changed the common law and imposed responsibility on the carrier when a trip lease is involved. When the regulations apply, the motor carrier is not only vicariously liable for the driver's negligence, but the carrier may also be liable for its own independent violation of its statutory duty to ensure compliance by the driver with the regulations. C.F.R. Section 390.11 . If the plaintiff can prove that the carrier consciously and recklessly disregarded its duties, punitive damages may be sought and recovered.
Disputes still arise today over liability between the lessor and lessee.
The issue is usually scope of employment, and employment for whom. Section 49 C.F.R. Section 390.21 provides leasing requirements for carriers. Special identification of the equipment being used and the name of the motor carrier operating the equipment is required on both sides of the vehicle. This identification is used as evidence of a lease at the time of an accident. These regulations help to distinguish liability between the lessor and lessee by specifying who is responsible for the driver's negligence at the time of the accident.