Case Summary

Allegations

Failing to disclose charge-back of workers’ compensation premiums; failing to specify in the lease agreement that the owner-operators can obtain a copy of the worker’s compensation coverage; and selling workers’ compensation insurance policies to non-employees without authorization or license from the State of Oklahoma. The judge dismissed this case due to OOIDA’s failure to make showing in support of associational standing to sue and because the individual plaintiff owner-operators’ are no longer under contract with Rocor and thus could not benefit from future relief. 

On March 30, 2000, OOIDA and four plaintiffs filed a second class action lawsuit against Rocor alleging that Rocor’s ROClease program is illegal in several respects including: the unauthorized sale of medical and life insurance without a license, coupled with failure to disclose in the lease documents how the amount charged back to drivers for that insurance will be computed; fraudulently inducing drivers to join the program by promising them an option to purchase the trucks, many (if not all) of which Rocor does not own and therefore cannot sell; requiring drivers to use a fleet card for fuel so that the company can gain undisclosed negotiated discounts, which the company does not pass through to the drivers; overcharging drivers for state fuel taxes; deducting "hidden charges" from drivers' compensation; failing to refund escrow account funds; failing to pay interest on escrow accounts; issuing memos that add charge-backs not detailed in the lease documents; and charging fees not documented in the lease for repair work, above and beyond the actual cost of the work performed when the work is charged to the maintenance escrow account.

Unfortunately, the assets of Rocor were sold to New Prime.  Rocor International no longer exists. The Bankruptcy Court approved a final plan of liquidation, however; the Liquidation Estate held very little money, and there were numerous claimants to these limited funds.  OOIDA negotiated  with the Liquidation Trustee to settle the claims for escrow funds which were forfeited under the ROCLease program.  It does not appear that there will be sufficient funds to satisfy outstanding claims by owner-operators.

News

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Court Documents

• Bankruptcy Agreement 2004
• Plaintiffs' Motion for Partial Summary Judgement 02.17.99
• First Amended Class Action Complaint 12.07.98