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OOIDA Files Class Action Suit Against Van Lines

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Case ID: 4263 | Miscellaneous | 03/30/2005

The Owner-Operator Independent Drivers Association (OOIDA) and six of its owner-operator members have filed a class action against North American Van Lines seeking monetary relief and damages for wide ranging violations of the federal truth-in-leasing regulations. The lawsuit was filed in federal court in Roanoke, Va., on behalf of all owner-operators moving freight under North Americanšs federal operating authority.

The suit challenges North Americanšs business practices toward its independent drivers. Federal law requires that the relationship between the carrier and driver must be governed by a written agreement. The plaintiffs allege that hundreds of owner-operators have driven for North American for many years with no written agreement.

North American Van Lines is headquartered in Fort Wayne, Ind. The complaint alleges that North American unlawfully reduces the revenue base from shipments on which owner-operator compensation is calculated, and that North American does not provide drivers with required information and documentation that would allow them to check the accuracy of amounts paid to them for their services.

OOIDA claims that North American, like most motor carriers, reported state fuel use taxes on a fleet-wide basis. Drivers pay the fuel tax at the pump, and receive credits for amounts overpaid in various states. The complaint alleges that North American confiscates driver credits if the credit is not offset within 30 days, which is in violation of the escrow provisions of the federal leasing regulations.

Further, the complaint states that North American requires drivers to contribute to a fund that North American uses to pay its public liability insurance and to cover the cost of certain government required safety and compliance programs. The plaintiffs contend that federal law places the obligation for those payments solely on the motor carrier, and that passing through or charging back the cost of them to drivers is improper. It is further alleged that unused funds are forfeited to North American, violating the requirement that such money be returned to drivers.

Lastly, the complaint alleges that owner-operators are forced to purchase certain products and services from the carrier as a condition of receiving freight assignments. The suit states that drivers must purchase through North American public liability and property damage insurance, full valuation cargo insurance, credit card services and Qualcomm communications equipment. The forced purchase of products and services is prohibited under the federal truth-in-leasing regulations.


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