OOIDA vs Allied Van Lines & North American Van Lines ...

Case Name:    OOIDA v. Allied Van Lines; OOIDA v. North American Van Lines
Court Filed:   U.S. District Court for the Northern District of Illinois
Date Filed:     May 5, 2004

Synopsis:  

• Allied “AVL” Action
  OOIDA filed suit against Defendants AVL and TFC, Inc. in federal district court in Illinois on May 5, 2004, alleging that AVL and TFC violated the federal Truth-in-Leasing regulations, 49 C.F.R. Section 376.12.  Violations included improperly charging owner operators for PL/PD coverage, failing to provide rated freight bills; and failing to return escrows within 45 days of termination. On May 26, 2005, the Illinois federal court certified a class of owner-operators under lease to TFC.” 

• North American “NAVL” Action
  OOIDA originally filed suit against NAVL on March 22, 2005, in the Western District of Virginia. On motion of NAVL, the action was subsequently transferred to the Northern District of Indiana.  Violations included the failure to implement written lease agreements with owner-operator drivers in violation of 49 C.F.R. §§376.11(a) and 376.12. 

Status...

• The February 2008 Bankruptcy:
  In February 2008, the Van Lines filed for Chapter 11 bankruptcy protection, in which they sought to completely discharge their liability for the remaining sums due under the settlement. OOIDA counsel agressively litigated the bankruptcy case, and secured a 25% recovery on behalf of the class - $1.2 million.  The final payment from the Van Lines was due on September 30, 2008, after which a final class distribution will be made. 

  The recovery of 25% of the balance due on the settlement was certainly much more beneficial to the class than the entire elimination of the debt which the Van Lines originally sought in the bankruptcy court. Moreover, the overall monies paid by the Van Lines - $4.2 million – remains one of the highest recoveries obtained by OOIDA in its litigation with carriers. 

• As of mid-November 2007 - Filed May 2004 in U.S. District Court, Northern District of Illinois. The truckers alleged that Allied’s leases failed to comply with federal law in regard to driver compensation and chargebacks. The parties in the class action negotiated an $8 million settlement, and the court approved it this fall. A similar case against North American Van Lines Inc. was consolidated with the Allied case for settlement purposes. The named individuals who represented the class received their settlement payments in early November 2007.

  OOIDA’s legal team was calculating individual settlement amounts for more than 4,000 class members at press time, and had plans to mail checks by the end of November. That first distribution payment was expected to be made from the first $3 million settlement installment paid by the Van Lines. The second and third distributions are scheduled in June 2008 and sometime in 2009.

  OOIDA President and CEO Jim Johnston expressed satisfaction that significant portions of the household goods industry and drivers could put their differences behind them and look to the future under revised owner-operator leases.

  “Not everyone gets everything they want in a settlement,” said Johnston, “but where the parties continue to deal with each other on an ongoing basis, it is as important to build for the future as it is to try and redress every conceivable grievance from the past. Allied and North American Van Lines deserve great credit for showing real leadership in addressing these types of long-standing industry issues.”

• The April 2007 Class-Wide Settlement: Both the AVL and NAVL actions were settled for $8 million in April 2007, and following class notice proceedings, the first settlement installment of $3 million (net of fees and expenses) was available for distribution to the class in December 2007.  Settlement distribution checks were sent to over 4,000 class members in early December 2007.  The highest amounts ranged from $800-900 for owner-operators who were under lease to the Van Lines during the entire class period.  The second installment of $3 million was due to be paid by the Van Lines in May 2008, and the third payment of $2 million was due to be paid in May 2009. 

In the news

• OOIDA Announces $8 Million Class-Action Settlement (5/1/07)
• OOIDA Files Class Action Against North American Van Lines (3/28/05)

Court Documents...

• no documents available