OOIDA files class-action complaint against Allied Van Lines for violating the Truth-in-Leasing regulations (5-5-2004)

OOIDA filed a class-action complaint with two of its owner-operator members against Allied Van Lines Inc. and one of Allied's authorized agents, TFC Inc., on May 5, 2004. The complaint alleges that Allied Van Lines, through TFC, and TFC itself violated the truth-in-leasing regulations by making a series of undisclosed, undocumented and excessive chargebacks; by failing to provide rated freight bills to owner-operators; by deducting a percentage of the owner-operators' linehaul revenue to pay for its own insurance responsibilities; and by failing to return owner-operator escrow accounts within the required 45 days after termination of a lease agreement.

The U.S. District Court for the Northern District of Illinois dismissed arguments by Allied Van Lines that a two-year statute of limitations should be applied to the class-action suit brought by OOIDA on behalf of owner-operators. Instead, the court agreed with the OOIDA position that a four-year statute of limitations was applicable. The court's ruling means the plaintiffs have the potential of recovering damages dating back four years instead of just two years.