Owner-Operator Independent Drivers Association
1 NW OOIDA Drive, Grain Valley, MO 64029
Web site: www.ooida.com
Facebook - OOIDA
Contact: Norita Taylor, norita_taylor@ooida.com
Headquarters: (816) 229-5791
For Immediate Release
August 31, 2005, Grain Valley, MO - The Owner-Operator Independent Drivers Association (OOIDA) announces that two different U.S. District Courts have recently granted class certification in its court actions against two major motor carriers - C.R. England and Landstar. Both cases challenge the legality of the trucking companies' leases.
According to OOIDA President and CEO Jim Johnson, the two separate lawsuits open the way to potentially include a combined total of more than 25,000 owner-operators who seek damages for alleged violations of the federal truth-in-leasing regulations.
OOIDA vs. C.R. England
On Aug. 29, 2005, U.S. District Court Judge Ted Stewart in Utah's Central Division issued an opinion in OOIDA's favor certifying the class in its lawsuit against C.R. England. The association's complaint contends the Salt Lake City-based carrier's lease agreements fail to include certain provisions that are required by the federal truth-in-leasing regulations, while incorporating other provisions that conflict with those regulations. The suit also alleges illegal handling of escrow accounts, forced purchase of goods and services by the carrier, overcharges for insurance and undocumented chargebacks.
In his ruling, Judge Stewart certified a class that includes owner-operators who are, or have been, leased to C.R. England for any period of time from June 1998 through the present. Judge Stewart found that the issues raised were common to all class members since all were party to substantively identical leases and C.R. England acted in a "uniform course of conduct" with respect to all potential class members.
The judge rejected the carrier's arguments that OOIDA could not represent the class because its business operations were in conflict with the interests of class members. In very strong language, Judge Stewart found that OOIDA's interests were not in conflict, but were aligned with those of owner-operator drivers. Even if OOIDA could be seen to be in competition with C.R. England in certain lines of business, which OOIDA denies, the judge found such competition to be irrelevant. The judge described OOIDA's interest in the litigation as the same as other class members - enforcement of owner-operator rights as mandated by the truth-in-leasing regulations. Judge Stewart added that, without OOIDA's participation, there likely would be no lawsuit pursuing drivers' rights against C.R. England.
OOIDA vs. Landstar
On Aug. 30, 2005, Judge Henry Lee Adams Jr. of the U.S. District Court in Jacksonville, Florida, issued an opinion certifying the class in OOIDA v. Landstar . In the order, the judge granted OOIDA's request to take class-wide discovery and set trial for April 2006. The class includes all owner-operators who were leased to Landstar operating companies Ranger, Ligon and Inway for any period of time from Nov. 1, 1998, through the present.
In its case against Landstar, OOIDA claims the carrier failed to disclose information required by the regulations in its lease agreement; overcharged owner-operators for fuel and transaction fees related to the purchase of fuel; unlawfully deducted amounts related to military shipments; and overcharged for base plates and permits issued by the states.
As in the C.R. England case, the judge found the issues met all the criteria for class certification in terms of the commonality and that the number of plaintiffs was large enough to warrant the class. The Landstar case could involve a class of approximately 23,000 owner-operators.
OOIDA's Jim Johnston hailed both of the rulings as continued victories for all owner-operators and OOIDA in their fight against carriers who are taking advantage of owner-operators through lease agreements that violate federal law.
"These two decisions are more in a long line of court orders in which OOIDA has been successful in getting classes certified in cases seeking to redress violations of the federal leasing regulations by motor carriers" said Johnston. "We are very pleased with both of these decisions."
In addition to the Utah and Florida court rulings, classes have now been certified in other OOIDA cases including decisions by federal district courts in Illinois (Allied Van Lines), Indiana (Mayflower Transit, Inc.), Ohio (Arctic Express, Inc. and Intrenet, Inc.), New Jersey (Gilbert Express), Iowa (Heartland Express) and Missouri (Ledar Transport).
Contact: Mike Schermoly, OOIDA (816) 229-5791
Founded in 1973, the Owner Operator Independent Drivers Association (OOIDA) is composed of more than 129,000 owner-operators, professional drivers, and small business truckers from all 50 states, and Canada. OOIDA represents the interests of this nation's more than 350,000 small-business trucking professionals in the legislative and regulatory processes at both federal and state levels.