OOIDA vs Heartland...

OOIDA, along with two of its owner-operator members, filed the class action against Heartland Express Inc. of Iowa City, IA, in the U.S. District Court for the Southern District of Iowa (in Davenport). The complaint contends Heartland Express has engaged in a pattern and practice of conduct violating its obligations to its leased owner-operators.

At issue are allegations that owner-operators leased to Heartland were forced to purchase insurance from the company, the failure of the carrier to provide insurance documents upon request and the excessive charge-backs to owner-operators for insurance premiums.  The complaint also alleges excessive charge-backs to the owner-operators for fuel purchased through the carrier’s purchasing program with Comdata Inc. All of the allegations represent violations of the federal truth-in-leasing regulations.

The case was certified as a class action in January 2003.  The court also ruled that a four-year statute of limitations period applies.

Status...

• On December 23, 2003, the plaintiffs accepted an “offer of judgment” in which Heartland offered to pay plaintiffs and class members $ 250,000 to resolve all claims in the case.  Heartland also agreed to pay plaintiffs’ reasonable attorneys’ fees, as determined by the court.  Owner-operators who were leased to Heartland from 1996 to the present will receive formal notice telling them how the $ 250,000 will be distributed and what their rights are regarding the settlement. OOIDA and Heartland have jointly asked the court to approve the offer and acceptance of judgment.

In the news

• Court grants OOIDA class certification in lawsuit against Heartland Express (1/24/03)
• OOIDA files class action against Heartland Express: Alleges violation of federal leasing regulations (1/09/02)

Court Documents...

• Class certification document (1/24/03)