Judge makes his intentions perfectly clear

Ledar lease-purchase drivers keep their trucks

by Rene Tankersley
Feature editor

Ledar Transport owner-operators get to keep their lease-purchase trucks and go to other companies, according to U.S. District Judge Fernando J. Gaitan Jr. for the U.S. District Court Western District of Missouri, Western Division.

OOIDA attorneys, Paul Cullen Sr. and Tom McCann, asked the court to find Ledar in contempt of court and to allow these drivers, who were "being held hostage" by Ledar, to take their trucks to other companies.

In its petition, OOIDA accused Ledar of attempting to circumvent the judge's order by pressuring lease-purchase owner-operators to sign an employment contract, which made Ledar the trucks' owners and changed the owner-operators to company drivers.

The six owner-operators - Billy Eiland, East St. Louis, IL; Carter J. Williams, Junction City, KS; Melvin Gilcrease, Benton Harbor, MI; Corliss Taylor, San Antonio, TX; Elcee Ray; and Ray Williams, both of Houston, TX - are buying their trucks through Ledar's lease-purchase program. The lease-purchase agreements required weekly payments of $600 to Ledar for the trucks and 7-cents-per-mile for a maintenance fund.

They were leased to Ledar Transport and dispatched by Ledar after the court issued an injunction Nov. 3 enjoining Ledar from "performing any transportation ... in equipment it does not own" until the company has in place a court-approved lease agreement.

When a driver refused to sign the new employment contract, Ledar threatened to take back the lease-purchase truck because the driver had no lease and therefore was violating the lease-purchase agreement.

As the "Ledar six" entered the courtroom, Carl Higgs of Ledar Transport looked at each man and began writing on a yellow pad. He then ripped the yellow page from its pad and slid it across the table to one of his attorneys. Higgs then sat with his back to the gallery for much of the hearing.

Attorney Tom McCann, representing OOIDA and the six drivers, opened the hearing by explaining each driver's situation with Ledar Transport. He chronicled each driver's experience since the injunction was issued Nov. 3. Drivers were dispatched every day afterwards until Nov. 10 when they refused loads or refused to sign the employment contract. Ledar used the drivers' trucks, paychecks, escrow accounts and maintenance repairs as bait to persuade drivers to sign the contract.

According to Corliss Taylor, Ledar had said, "If you rescind, you will not be under a lease and you will be relieved of your truck because you don't have a lease." Because it was cold and raining sleet in Kansas City, Taylor signed the new contract, knowing he had no other way home to San Antonio. "I witnessed drivers being put out of their trucks on that very corner," Taylor said.

Ray Williams said Ledar withheld his three paychecks and his $8,000 maintenance fund contingent upon him signing the contract, which he did not sign.

Melvin Gilcrease had been leased with Ledar since August and had not yet received a paycheck. He refused to sign the new contract and his truck was taken early one morning. Gilcrease says that Ledar told him they did not have the truck but would help him find it if he signs the employment contract. He filed a police report and is following up with the insurance company.

Carter Williams' truck sat in Ledar's maintenance shop for more than two weeks on a three-day repair job because he too refused to sign the contract. When he returned from Tuesday's hearing, maintenance employees had again torn down his truck engine to repair the oil leak they were suppose to fix two weeks ago.

Elcee Ray, who had received one $4 paycheck since signing on with Ledar, signed the new contract in order to get his truck repaired at Ledar's maintenance shop.

After being with Ledar for eight months, Billy Eiland was told that if he did not sign the new contract he was "likely to be terminated."

"We do not believe the client is violating the court's order," Ledar's attorney said. He explained that Ledar sent a Qualcomm message to their drivers as soon as the injunction order was confirmed on Nov. 7.

Just before the hearing, Ledar's attorney filed a proposed lease agreement for approval.

To explain the employment contract, Ledar's attorney cited paragraph two of the injunction order, which says: "For each equipment lessor to Defendant who is subject to any other lease, lease-purchase, or sales agreement between such lessor and Defendant, its officers, directors, shareholders, owners, employees, agents, corporate subsidiaries, corporate parents and/or corporate affiliates, such other agreement may be rescinded in its entirety at the option of such lessor, free of any penalty or further obligation upon such lessor. Defendant shall notify all such lessors of this provision in writing upon the issuance of this injunction."

Judge Gaitan clarified his intention by explaining that it was the lease-purchase driver's option, "not Ledar's option," to rescind the lease-purchase agreement. He added that these drivers could lease their trucks to another company and continue their lease-purchase agreements with Ledar. Additionally, the judge nullified the new employment contracts and gave Ledar until Friday, Nov. 17 to comply with the injunction order. Read the full text of judge's order here...

As Higgs and his attorneys left the courtroom, he patted two of the drivers on the shoulders. He told Carter Williams, "I see your attorney finally called you back."

When Judge Gaitan agreed to allow these drivers to take their trucks to other companies, Taylor's eyes welled up with unshed tears as he quietly whispered, "Thank you, Jesus. Thank you, Jesus." Later, outside the courtroom, Taylor said he would finally be able to sleep at night, knowing he would not lose his truck.