March 27, Grain Valley, MO -- As part of its continued efforts to promote compliance with the federal truth-in-leasing regulations by motor carriers, the Owner-Operator Independent Drivers Association announces that it has filed a class action suit, along with two of its owner-operator members, against Burlington Motor Carriers, an Indiana based carrier. The action alleges undisclosed mark-up in insurance costs passed on to the company's leased owner-operators.

In its complaint, filed in U.S. District Court for the Southern District of Indiana, OOIDA alleges that despite Burlington's agreement and obligation to charge back premiums for insurance coverage purchased through the company, it was deducting amounts from owner-operator compensation substantially in excess of the actual premiums.

"This type of business practice is in direct violation of the federal truth-in-leasing regulations," said Jim Johnston, president of OOIDA." Under the regulations, motor carriers are only allowed to deduct from compensation for those items clearly specified in the lease. We are seeking a court-ordered end to these overcharge practices."

Johnston said that, while it is common practice to purchase insurance for the leased equipment through their carrier, an owner-operator has the explicit right to know the actual cost for each type of coverage and to be supplied with a copy of the policy for each type of insurance upon request. The complaint alleges that this information was not supplied by Burlington when requested by the two owner-operators joining the class action.

Johnston went on to say that OOIDA wants a declaration by the court that the Burlington lease fails to comply with federal law. He added, "If necessary, we will ask for an injunction to stop Burlington from moving freight with leased equipment based upon leases that do not meet federal requirements." Johnston pointed out that a similar injunction order had recently been granted by the U.S. District Court for the Western District of Missouri against Ledar Transport of Kansas City in another lawsuit filed by OOIDA on behalf of members. That lawsuit also involved violations of the federal truth-in-leasing regulations.

FOR MORE INFORMATION CONTACT: Todd Spencer, (800) 444-5791

To read the complete text of the complaint, Click Here...