A U.S. District judge has ruled that Arctic Express illegally withheld escrow funds from its owner-operators.

The Owner-Operator Independent Drivers Assn. says U.S. District Court Judge Algenon L. Marbley has issued his written opinion granting summary judgment for the group in its lawsuit against the Ohio-based company.
The suit, filed along with members Carl Harp, Garvin Keith Roberts and Michael Wiese against Arctic Express and its affiliate truck leasing company, D&A Associates, claiming violations of the federal truth-in-leasing regulations for their failure to return escrow accounts after the termination of the owner-operators' leases. Among the key issues being challenged by OOIDA were clauses in the lease/purchase agreements stipulating conditions under which the escrow accounts would be forfeited by the owner-operators.
Judge Marbley wrote that the companies' lease agreement and lease/purchase option were in violation of federal truth-in-leasing regulations. In a strongly worded opinion, he wrote, "The Defendants here did not substantially comply, nor did they slightly comply. Arctic, behind the shield of an affiliated company, D & A, absconded with the Plaintiff's escrow funds."
Judge Marbley concluded that evidence showed that the maintenance fund to which the owner-operators had been contributing was being considered by the companies as "a general fund to satisfy any obligation incurred by the members, which is in violation of the letter and spirit of the regulations." Judge Marbley went on to add, "In its final analysis, the Court concludes that the adoption of the defendants' argument that they have satisfied §376.12(k) by describing the 'conditions' for the return of escrow funds could lead to absurd results."
OOIDA President Jim Johnston described the ruling as "one of the most important court opinions that we have obtained to date in challenging the abuses of carriers who disregard or manipulate the federal leasing regulations out of personal or corporate greed."
Steve Rossi, executive vice president for Arctic Express, said the company is reviewing the judgment and will discuss with its legal counsel whether or not to appeal.