OOIDA Sues More Carriers For Alleged Lease Violations
DEBORAH LOCKRIDGE, SENIOR EDITOR
EVAN LOCKRIDGE, NEWS EDITOR
The Owner Operator Independent Drivers Assn. has filed two new lawsuits against motor carriers for alleged violations of federal leasing regulations.
The suits, one against C.R. England and the other against Swift Transportation and M.S. Carriers, were filed in response to member complaints.
OOIDA and five of its members filed a class action complaint against C.R. England Inc., Salt Lake City. The complaint contends the carrier's lease agreements fail to include certain provisions that are required by the federal truth-in-leasing regulations, while incorporating other provisions that conflict with the truth-in-leasing regulations.
C.R. England's alleged violations include forced purchases of insurance and satellite communications services from the company, the failure of the carrier to provide insurance documents upon request, unsubstantiated chargebacks to compensation, and the failure to return escrow accounts.
When HDT contacted C.R. England officials about the lawsuit they declined to comment.
A class action suit also was filed by OOIDA and 10 members against Swift Transportation Co. Inc. of Arizona and its subsidiaries, Swift Transportation Co. Inc., M.S. Carriers Inc. and M.S. Carriers Warehousing Distribution Inc., all of Nevada.
The suit claims that the leases of Swift and M.S. Carriers are in violation of the federal truth-in-leasing regulations. The lease contracts fail to contain a long list of provisions required by 49 C.F.R.§376.12, according to OOIDA. The leases also contain provisions in direct conflict with the leasing regs, according to OOIDA.
In addition, the carriers are accused of failing to provide owner-operators with required documentation for chargebacks, forced purchase of insurance and other products and services, including a $25 per week settlement processing fee, $15 per month for TripPak services, mailbox charges for use of required Qualcomm systems, and required installation fees for the Qualcomm; illegal deductions from escrow accounts; and failure to return escrow accounts within the required time after termination.
OOIDA's suit also claims that owner-operators leased to M.S. Carriers at the time of that company's takeover by Swift were victimized through the carrier's failure to return their escrow accounts.
M.S. Carriers and Swift officials did not return calls for comment.
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