OOIDA recovers $1 million from Gilbert Express

The United States Bankruptcy Court for the District of New Jersey has approved a $1 million class action settlement of OOIDA's dispute with Gilbert Express, Inc.

In October 2000, OOIDA filed a class action lawsuit in federal court against the Linden, NJ, motor carrier on behalf of individual owner-operators. The association alleged that Gilbert had engaged in a long-term, systematic practice of unlawfully violating the federal truth-in-leasing regulations and defrauding their owner-operators.

The terms of the settlement include the payment from Gilbert Express of $1 million into a settlement fund. The settlement covers all owner-operators who leased equipment and services to Gilbert Express during the period of October 1996 through June 2001 - approximately 1,100 drivers. Gilbert is also required under the settlement to comply with federal regulations by using the form of agreement Gilbert negotiated with OOIDA. In addition, current drivers with Gilbert Express will have their escrows guaranteed by other companies associated with Gilbert for a period of three years.

Commenting on the settlement, OOIDA President Jim Johnston said: "I am gratified that after two years of litigation, we have resolved this case and the class of owner-operators will be compensated."

Looking at the larger picture, Johnston added: "OOIDA's determination in pursuing legal action against carriers for violations of the federal regs goes far beyond simply seeking relief for a few individual truckers leased to them. It is our goal to promote and ensure greater compliance with the regulations by a greater number of carriers and end abuses that are taking place."

The lawsuit alleged that Gilbert overcharged owner-operators for items such as insurance policies and communications equipment. A class was certified by the federal court in Newark, NJ, in February of 2001. In June 2001, Gilbert Express sought bankruptcy protection in the bankruptcy court in Trenton, NJ, citing the costs and uncertainty related to the litigation as a principal reason for its filing.