Owner-operator lawsuits are producing results

On July 8, the Federal District court for western Oklahoma found Rocor International Inc. in violation of federal leasing regulations. This court order is the latest development in OOIDA's two class action lawsuits against Rocor (dba Donco Carriers.) Judge Tim Leonard deferred ruling until July 21.

The first case, filed in June 1998, involves whether or not Rocor may cover owner-operators under its self-insured Workers Compensation Insurance program, and charge owner-operators for that coverage, under Oklahoma state law, and whether or not Rocor has violated the Federal truth-in-leasing regulations at 49 C.F.R. Part 376.  The second case, filed in March 2000, involves the propriety of certain of Rocor's actions with regard to its "ROCLease" program.

In the Workers Compensation case, Rocor filed two Motions to Dismiss early in the litigation. In one, Rocor asserted that OOIDA and the individual plaintiffs (OOIDA members Gary Jones and Don Holly) had failed to state a claim upon which relief could be granted.  The second motion asserted that the court lacked jurisdiction to hear the claims under the same theory used by the defendants in OOIDA's cases against New Prime, Inc. and Arctic Express, Inc.

On July 7, 2000, Judge Tim Leonard of the Federal District Court for the Western District of Oklahoma denied the Motion to Dismiss for lack of subject matter jurisdiction, citing the Prime and Arctic cases. On July 8, 2000, Judge Leonard also denied the Motion to Dismiss for failure to state a claim, finding that Rocor "has violated the federal truth-in-leasing regulations" and that owner-operators are not employees within the meaning of the Oklahoma Workers' Compensation Act. 

The July 8th Order states that a memorandum opinion will explain Judge Leonard's findings in more detail.  That opinion was not available but watch this web site for more information.

Additionally, a hearing was held on July 10, 2000, on Plaintiffs' Motion for Preliminary Injunction on violations of the leasing regulations alleged in the second case.  Judge Leonard stated from the bench that Rocor's current lease is "clearly deficient," but deferred ruling on the Motion to give the parties a chance to put a lease that complies with the law into effect.  The judge is expected to rule on Plaintiffs' Motion on July 21, 2000.