The Owner-Operator Independent Drivers Association announced that the U.S. Court of Appeals for the Eleventh Circuit recently ruled in favor of OOIDA
in it’s class action against Allied Holdings Inc., stating that owner-operator equipment leases with motor carriers are exempt from compulsory arbitration under the Federal Arbitration Act.
The ruling upholds an earlier decision in March 2004 by the U.S. District Court for the Northern District of Georgia. That court determined that the arbitration provisions contained in Allied’s owner-operator leases could not be enforced under the Federal Arbitration Act because the lease agreements between truck drivers and motor carriers merely set out the terms of the relationship as established by federal truth-in-leasing regulations.