ABF Suit Against YRC, Teamsters Dismissed

December 19, 2010

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A federal judge on Thursday dismissed a lawsuit ABF Freight System filed against rival YRC Worldwide and the Teamsters aimed at blocking a labor agreement central to YRC's survival.
U.S. District Judge Susan Webber Wright granted motions by YRC and the Teamsters to dismiss the suit because ABF did not have jurisdiction to sue over the agreement.

The promptness of the dismissal was likely influenced by the November 16th YRC filing, which urged expedited resolution of its motion to dismiss on the grounds that the mere existence of a lawsuit could substantially imperil YRC's liquidity, jeopardize its debt restructuring, and discourage its ability to obtain new financing.

In a statement, ABF said that it is considering an appeal.

"We are disappointed in this outcome and continue to believe that our Nov. 1 lawsuit is strong. We are reviewing the court's ruling and considering next steps, including possibly an appeal of the decision to the U.S. Court of Appeals for the Eighth Circuit."

The concessions to the National Master Freight Agreement granted to YRC and not to ABF leave ABF at a distinct operating cost disadvantage. Therefore it is likely that ABF will continue to pursue legal recourse and appeal the ruling.

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