OOIDA vs. Mayflower ...

Case Name: OOIDA v. Mayflower Transit
Court Filed: U.S. District Court for Southern District of Indiana
Date Filed: April 2, 1998

Synopsis:  In April of 1998, OOIDA filed two class action lawsuits against Mayflower Transit, one of the nation’s largest  household goods carriers.  In the case involving Mayflower’s handling of owner-operator escrow funds, the Court ruled that Mayflower’s retention of owner-operator fuel tax credits for three years after a driver terminates his lease with Mayflower or its authorized agent violated the Leasing Regulations.  The Court also ruled that Mayflower could not use owner-operator fuel tax credits to offset amounts allegedly owed to Mayflower for obligations unrelated to fuel taxes.  In the case involving Mayflower’s overcharges and improper charges for insurance, OOIDA has recently filed a motion asking the Court to rule on its claim that Mayflower has overcharged owner-operators for bobtail and occupational/accident coverage. 

Importantly, however, Mayflower advised the Court in response to that motion that it has adopted a conforming model lease that all of its agents will in the future be required to use. 

Class Certification: The court granted motions for class certification in both cases on November 5, 2001, conditionally certifying two classes.  Mayflower filed a motion to decertify the classes on December 15, 2003.  On September 27, 2005, the court granted the motion to decertify with respect to the state law breach of contract and conversion claims, but denied it as to the federal claims.

Class Definition: The class definition approved by the court in the escrow case is:

All independent truck owner-operators who reside in the United States and who entered into federally regulated lease agreements with Mayflower, directly or indirectly through Mayflower’s agents; who terminated those leases from February 16, 1996 to the present date; and had state fuel-tax credits withheld by Mayflower or its agents in an escrow account. 

The class definition in the insurance action is:

All independent truck owner-operators who reside in the United States and who entered into federally regulated leases with Mayflower, directly or indirectly through Mayflower’s agents; and for whom either Mayflower or its agent purchased or obtained insurance coverage and charged back monies for such coverage to the owner-operator from April 2, 1996 to the present date.  

Class Notice: Notice was mailed to Class members in the escrow case in late July, 2007.  The opt-out period expired on October 4, 2007.  There were a total of 17 opt-outs.

Status...

• In the Escrow case, Mayflower tendered an “Offer of Judgment” on July 10, 2008.  Mayflower’s Offer of Judgment provided that Mayflower would pay 100% of the fuel tax credit escrow funds unlawfully retained by Mayflower, plus interest, for those Class members who submitted timely claim forms. The total amount to be paid to Class members is $194,220.98.  The Offer of Judgment also provides that Mayflower will pay Plaintiffs’ reasonable attorneys’ fees.

  Plaintiffs and Class counsel accepted the Offer of Judgment and the Court granted preliminary approval on September 12.  Supplemental Notice was sent to eligible Class members providing that any objections to the Offer and Acceptance of Judgment to be filed with the Court.

  The Court scheduled a Fairness Hearing for November 14, 2008 in Indianapolis to give final approval to the Offer and Acceptance of Judgment at that time.

  Insurance Case - There are no issues remaining for adjudication.  Because of the Court’s rulings on statute of limitations and PL/PD, plaintiffs’ claims have been denied.  The Court entered final judgment in favor of defendant on January 31, 2008.

  OOIDA has appealed the insurance case to the Seventh Circuit.

• As of mid-November 2007 - Filed April 1998 in U.S. District Court, Southern District of Indiana. OOIDA has requested a March 2008 trial in this case, which challenges the carrier’s practices related to fuel tax credit escrow funds and general escrow funds.

  Mayflower had asked for the case to be dismissed, but in September the judge denied that request and said that the case would move forward. OOIDA was scheduled to file its case management plan with the court by Nov. 15.

  “I am pleased that we will finally be able to present our claims to a jury,” said OOIDA’s Johnston. “We believe that once the jury hears the facts of the case, they will hold Mayflower fully accountable for its violation of federal law.”

In the news

• Court grants OOIDA summary judgment against Mayflower Transit - rules that carrier violated truth-in-leasing regulations (10/10/02)
• U.S. District Court upholds class certification for OOIDA, denies Mayflower Transit appeal (12/20/01)
• U.S. District Court certifies class in two OOIDA lawsuits against Mayflower Transit(11/14/01)
• Mayflower asks court to dismiss OOIDA complaints; U.S. District Judge says no (8/28/01)

Court Documents...

• Mayflower Escrow
• Mayflower Insurance