The logistics world gathered in Chicago for the Journal of Commerce Inland Distribution Conference 2025, where industry leaders shared essential insights on the broader supply chain. Among the featured experts was Matthew Leffler, known as "The Armchair Attorney"—a lawyer who has been practicing law for 15 years and serves as an adjunct law professor at Michigan State University College of Law.
During a conversation with Samantha, Mr. Leffler set the stage for the biggest legal issues currently facing the industry, focusing on two pivotal areas: executive emergency powers and broker transparency.
According to Matthew Leffler, the VOS Selections case—currently on appeal before the US Supreme Court—is the most important case in his lifetime and potentially the lifetime of many industry professionals. This case centers on the reciprocal tariffs put in place and addresses the fundamental issue of the separation of powers under the US Constitution.
The controversy stems from the use of the International Emergency Economic Powers Act of 1977 (AIPA). AIPA permits the President to declare an emergency to handle events like hurricanes, earthquakes, or attacks. However, in the VOS Selections case, AIPA was used for the first time ever in US history to assess tariffs on trading partners, effectively starting an international trade war without any advice or consent from Congress.
Leffler emphasizes that the issue transcends political parties, noting that both parties are equally "guilty of taking way too much power". Under AIPA, the President declares an emergency, and the only way Congress can stop it is if two-thirds of both the House and the Senate agree to an override—a condition Matthew Leffler calls "impossible".
The case has seen recent twists:
The Supreme Court has now granted certiorari, taking on the case. The precedent set is critical because, as Mr. Leffler noted: "Power begets power. Once you give up the power, you don't get it back.". He warns that future presidents, regardless of their political stance, could use this same emergency power to enact crippling tariffs on pet projects, such as a 5,000% tariff on internal combustion engines due to a declared climate change emergency, and no one could stop it.
The proper procedure for implementing tariffs, Leffler explains, is for the President to go to Congress, advocate for the law, and sign it once Congress passes it. "This is a dangerous precedent that I do not want to see happen," Leffler concluded, expressing belief that organizations like the US Chamber of Commerce and the American Trucking Associations will file amicus briefs against this use of AIPA.
Another critical legal issue in logistics is broker transparency, governed by federal rule 371.3. This rule allows a party to a broker transaction to request documents from that transaction. Generally, brokers require the motor carrier to waive these rights.
The Federal Motor Carrier Safety Administration (FMCSA) has proposed a new rule that would require electronic records to be provided to motor carriers within two days of request, but a final rule is not expected until May 2026.
However, the litigation of Pink Cheetah vs. TQL is currently shaping the landscape. Pink Cheetah, a small motor carrier, requested records from TQL regarding payment for an ice cream load. After TQL refused, Pink Cheetah sought and received a letter from the FMCSA directing TQL to provide the records. The documents revealed a significant margin—around 40 to 45%—for TQL.
When Pink Cheetah sued in federal court after TQL refused further payment, the case was dismissed. Yet, this dismissal included a fascinating detail. Matthew Leffler pointed out: "Footnote three on page seven… The judge says, 'If you want to try to attack the waiver, say this in your lawsuit.'".
This judicial hint provides a blueprint for future litigation. If Pink Cheetah can amend its complaint to survive the motion to dismiss, "They will create the blueprint for every other small motor carrier to attack every other broker," Matthew Leffler stated. This legal battle centers on whether motor carriers can legally waive the transparency rights granted under 371.3, potentially changing industry interaction between carriers and brokers.
Samantha and Matthew Leffler also discussed regulatory struggles, noting that the FMCSA and DOT have been receiving significant criticism, even from those outside the transportation field.
One major concern is the vetting of drivers. The impending issue of non-domiciled CDL holders could potentially take around 200,000 drivers off the road. This driver segment accounts for about 5% or less of the overall motor capacity.
The broader problem, Leffler noted, is a lack of effective enforcement mechanisms at the FMCSA. For example, the national out-of-service rate is 20%, and some companies involved in horrifying accidents have had out-of-service rates as high as 35%. Leffler suggests that when non-domicile CDLs are downgraded, these individuals may shift to vehicles that do not require CDLs or move to intrastate driving, which generally has less stringent regulations. This effectively shifts the problem to a more localized market.
Matthew Leffler remains passionate about making complex legal information accessible to business professionals. He encourages industry members to find him online to answer questions, noting that his mandate is to educate and entertain. He also shared that his favorite part of the Inland Distribution Conference is the quality of the attendees—mostly shippers keen on understanding best practices and conversations.