For Immediate Release

Owner-Operator Independent Drivers Association
1 NW OOIDA Drive, Grain Valley, MO
E-mail:ooida@ooida.com
Web site: www.ooida.com
Phone: (816) 229-5791
Fax: (816) 427-4468

Date:  July 8, 2002

OOIDA files class actions against C.R. England and Swift/MS Carriers

July 8, 2002, Grain Valley, MO - The Owner-Operator Independent Drivers Association (OOIDA) filed two lawsuits during June against motor carriers charging violations of the federal leasing regulations.

The two new lawsuits, one against C.R. England and the other against Swift Transportation and M.S. Carriers, were filed in response to OOIDA member complaints involving non-compliant leases and a pattern of improper business practices.

OOIDA President Jim Johnston said, "It's important to recognize the unconscionable business practices we are challenging in these cases have implications far beyond those truckers who suffered direct damages. Damage is done to all truckers and, in fact, the entire industry. When major carriers are allowed to profit from unethical or illegal business practices, the dividing line between ethical and unethical business practices, and treatment of professional drivers, is continually driven lower and lower by their actions."

OOIDA files complaint against C.R. England

On June 4, OOIDA filed a class action complaint against C.R. England Inc. of Salt Lake City, UT.  OOIDA is joined in the complaint by five of its owner-operator members. The suit against C.R. England was filed in U.S. District Court for the Eastern District of California, where one of the five OOIDA member-plaintiffs is based.

The complaint contends the carrier's lease agreements fail to include certain provisions required by the federal truth-in-leasing regulations, while incorporating other provisions that conflict with the truth-in-leasing regulations.

The complaint seeks the declaratory, injunctive and monetary relief being sought on behalf of owner-operators affected by C.R. England. OOIDA also has filed a separate motion for a preliminary injunction to prohibit C.R. England from doing business with equipment it does not own until its leases are brought into compliance with federal regulations.

OOIDA is requesting the suit against C.R. England be certified as a class action to include other owner-operators who have experienced similar losses through their leases with the carrier.

OOIDA sues Swift Transportation/M.S. Carriers

A lawsuit was filed June 11 against Swift Transportation Co. Inc. (AZ), Swift Transportation Co. Inc. (NV), M.S. Carriers Inc. and M.S. Carriers Warehousing Distribution Inc. Swift Transportation Co. Inc. (NV) is the holding company of Swift and M.S. Carriers. M.S. Carriers Warehousing is a wholly owned subsidiary of M.S. Carriers engaged in leasing equipment to owner-operators.

OOIDA and 10 of its owner-operator members filed the class action suit in U.S. District Court for the District of Arizona.

The complaint maintains the leases of Swift and M.S. Carriers violate the federal truth-in-leasing regulations by failing to contain a number of provisions required by 49 C.F.R.§379.12. The leases also contain provisions in direct conflict with the leasing regulations.

In addition, the carriers are accused of failing to provide owner-operators with required documentation for chargebacks against compensation; forced purchase of insurance and other products and services; illegal deductions from escrow accounts; and failure to return escrow accounts within the required time after termination.

Another issue of this lawsuit is the allegation that owner-operators leased to M.S. Carriers at the time of the company's take-over by Swift were victimized through the carrier's failure to return their escrow accounts deposited with M.S. Carriers. The complaint asserts that, rather than observing contract termination procedures contained in their lease agreements at the time of the take-over and returning the balances of funds held in escrow, Swift replaced M.S. Carrier contracts with their own lease agreements without settling up or returning the escrow account of the owner-operators. Swift is now accused of "tortious interference" by materially changing those existing contracts between M.S. Carriers and the owner-operators.

The lawsuit seeks a declaration that the carriers are in violation of the leasing regulations, that they violated their fiduciary and trust duties to safeguard the escrow accounts, and that Swift and Swift Holding tortiously interfered with the M.S. Carrier leasing contracts while enriching themselves through illegal activities. The suit seeks monetary relief in the form of a return of all escrow funds, monies deducted from compensation in violation of 49 C.F.R.§376.12, interest and damages.

OOIDA also has filed a separate motion for a preliminary injunction against Swift from doing business with leasing equipment until its leases are brought into compliance with the federal regulations. OOIDA is requesting class certification in the case and a jury trial.

Contact: Paul Cullen, Sr., The Cullen Law Firm (202) 944-8600

Founded in 1973, the Owner-Operator Independent Drivers Association (OOIDA), is comprised of more than 70,000 owner-operators, professional drivers, and small business truckers from all 50 states and Canada. OOIDA represents the interest of this nation's more than 350,000 small business trucking professionals in the legislative and regulatory processes at both federal and state levels.