The Owner-Operator Independent Drivers Association and two of its owner-operator members have filed a class action suit against Indiana-based Burlington Motor Carriers for violating federal truth in leasing regulations.
The suit alleges undisclosed mark-ups in insurance costs passed on to the company's leased owner-operators.
OOIDA alleges that despite Burlington's agreement and obligation to charge back premiums for insurance coverage purchased through the company, it was deducting amounts from owner-operator compensation far more than the actual premiums.
"This type of business practice is in direct violation of the federal truth-in-leasing regulations," said Jim Johnston, president of OOIDA. "Under the regulations, motor carriers are only allowed to deduct from compensation for those items clearly specified in the lease. We are seeking a court-ordered end to these overcharge practices."
Johnston said that, while it is common practice for owner-operators to purchase insurance for the leased equipment through their carrier, an owner-operator has the right to know the actual cost for each type of coverage and to be supplied with a copy of the policy for each type of insurance upon request. OOIDA says Burlington did not supply this information when it was requested by the two owner-operators joining the class action.
This is not OOIDA's only suit over truth in leasing regulations. The group recently filed a class action lawsuit against New Jersey-based Gilbert Express, and has had some success in its suit against Kansas City, Mo.-based Ledar Transport.
The suit alleges undisclosed mark-ups in insurance costs passed on to the company's leased owner-operators.
OOIDA alleges that despite Burlington's agreement and obligation to charge back premiums for insurance coverage purchased through the company, it was deducting amounts from owner-operator compensation far more than the actual premiums.
"This type of business practice is in direct violation of the federal truth-in-leasing regulations," said Jim Johnston, president of OOIDA. "Under the regulations, motor carriers are only allowed to deduct from compensation for those items clearly specified in the lease. We are seeking a court-ordered end to these overcharge practices."
Johnston said that, while it is common practice for owner-operators to purchase insurance for the leased equipment through their carrier, an owner-operator has the right to know the actual cost for each type of coverage and to be supplied with a copy of the policy for each type of insurance upon request. OOIDA says Burlington did not supply this information when it was requested by the two owner-operators joining the class action.
This is not OOIDA's only suit over truth in leasing regulations. The group recently filed a class action lawsuit against New Jersey-based Gilbert Express, and has had some success in its suit against Kansas City, Mo.-based Ledar Transport.
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