A lawsuit filed by owner-operators against a New Jersey motor carrier for allegedly violating federal truth-in-leasing operations will proceed as a class action.
The Owner-Operator Independent Drivers Assn. and several members filed suit in October against Gilbert Express Inc. They will represent an estimated 1,000 owner-operators.
On Feb. 13, a judge of the U.S. District Court for the District of New Jersey certified the case as a class action. On Feb. 15, a judge ordered that to the extent trial was necessary, it would be held in front of a jury.
Gilbert Express is accused of violating federal truth-in-leasing regulations, such as forcing their contracted truckers to purchase and/or lease a Qualcomm from and through Gilbert. While truckers under lease with Gilbert were obligated to maintain various escrow accounts, the owner-operators allege, they were not paid interest on any escrow.
The case also accuses Gilbert of forcing leased owner-operators to buy insurance through Gilbert's own program.
"A carrier can require a contractor to have specific types of insurance, but it can't require him to purchase anything from the company," says OOIDA Executive Vice President Todd Spencer. "In the event that the company were to make those kind of policies available to their owner-operators, and a contractor decides to buy that coverage from the carrier, they're required by law to provide certificates of insurance showing what you're paying for."
Spencer said he expects that a trial date will be set within the next few weeks.
The Owner-Operator Independent Drivers Assn. and several members filed suit in October against Gilbert Express Inc. They will represent an estimated 1,000 owner-operators.
On Feb. 13, a judge of the U.S. District Court for the District of New Jersey certified the case as a class action. On Feb. 15, a judge ordered that to the extent trial was necessary, it would be held in front of a jury.
Gilbert Express is accused of violating federal truth-in-leasing regulations, such as forcing their contracted truckers to purchase and/or lease a Qualcomm from and through Gilbert. While truckers under lease with Gilbert were obligated to maintain various escrow accounts, the owner-operators allege, they were not paid interest on any escrow.
The case also accuses Gilbert of forcing leased owner-operators to buy insurance through Gilbert's own program.
"A carrier can require a contractor to have specific types of insurance, but it can't require him to purchase anything from the company," says OOIDA Executive Vice President Todd Spencer. "In the event that the company were to make those kind of policies available to their owner-operators, and a contractor decides to buy that coverage from the carrier, they're required by law to provide certificates of insurance showing what you're paying for."
Spencer said he expects that a trial date will be set within the next few weeks.
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