A U.S. District Court has granted a motion for partial summary judgment to the Owner-Operator Independent Drivers Assn. (OOIDA) in one of its complaints against Mayflower Transit Inc.

U.S. District Court Judge Sarah Evans last week ruled that Mayflower had unlawfully retained fuel tax credits from owner-operators in violation of the federal truth-in-leasing regulations.
The ruling addresses one of two suits brought by OOIDA against the Fenton, Mo., motor carrier. The first is over the carrier's alleged failure to return fuel tax credits on a current basis and to return fuel tax credits and other funds held in escrow accounts to owner-operators within the required time period after their lease agreements had expired. The other suit alleges that Mayflower unlawfully overcharged the owner-operators for insurance products they purchased through Mayflower, which is also a violation of federal truth-in-leasing regulations. This second suit is still pending. The complaints were filed by OOIDA along with several of its owner-operator members.
In her ruling, Judge Barker agreed with OOIDA's argument that the fuel tax credits Mayflower withheld from its owner-operators constituted an escrow fund which were subject to the federal regulations and, therefore, were refundable within 45 days after termination of the leases.
The carrier had argued the fuel tax credits were not an escrow fund and that it should be entitled to hold those credits for three years because of the statute of limitations on tax liabilities in Indiana and Missouri. The court found no legal basis for this. Furthermore, Judge Barker concluded that, while the leasing regulations permit Mayflower to deduct money for those obligations incurred by the lessor that have been previously specified in the lease, the fuel tax credits could only be reduced by other fuel tax liabilities.
While issuing the summary judgment on the federal violations by Mayflower, the court declined to grant a summary judgment in the allegations of conversion under Indiana law brought by OOIDA against the carrier. The district court ruled that Mayflower was entitled to a jury trial on that complaint.
After the ruling, OOIDA President Jim Johnston said, "We are very pleased with the court's recognition of these fuel tax credits as an escrow fund subject to the relevant clauses in the truth-in-leasing regulations. Along with several related rulings in other courts, solid precedents continue to be established on behalf of owner-operators to protect their rights and promote compliance with the federal regs."
This summary judgment against Mayflower arises against the backdrop of two previous rulings from last year, one denying Mayflower's motion to dismiss, and the other granting class certification to the case. This later ruling was upheld by a U.S. Court of Appeals.
Founded in 1973, OOIDA is made up of more than 70,000 owner-operators, professional drivers and small business truckers from all 50 states and Canada.