March
28, 2005, Grain Valley, MO The Owner-Operator Independent
Drivers Association (OOIDA) and six of its owner-operator
members have filed a class action against North American
Van Lines in federal court in Roanoke, VA. The complaint
was filed on behalf of all owner-operators moving freight
under North American's federal operating authority.
The lawsuit seeks injunctive relief and damages for
wide ranging violations of the federal truth-in-leasing
regulations.
The complaint challenges North American's business
practices toward its independent drivers. At the
most fundamental level, federal law requires that
the relationship between the carrier and driver must
be governed by a written agreement. The suit alleges
that hundreds of owner-operators have driven for
North American for many years with no written agreement.
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.
North American, like most motor carriers, reports
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.
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 Fort Wayne, IN-based 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.
Questions about the lawsuit may be directed to Paul
D. Cullen, Sr. or Joyce E. Mayers of The Cullen Law
Firm at 202-944-8600.
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