OOIDA files suits against Landstar

Nov. 8, 2002
The Owner-Operator Independent Drivers Assn. Inc. (OOIDA) and seven of its members have filed a lawsuit against Landstar System Inc. and its operating companies: Landstar Express America Inc., Landstar Gemini Inc., Landstar Inway Inc., Landstar Ligon Inc., Landstar Logistics Inc. and Landstar Ranger Inc. The class action suit charges Landstar has been violating the federal truth-in-leasing regulations
The Owner-Operator Independent Drivers Assn. Inc. (OOIDA) and seven of its members have filed a lawsuit against Landstar System Inc. and its operating companies: Landstar Express America Inc., Landstar Gemini Inc., Landstar Inway Inc., Landstar Ligon Inc., Landstar Logistics Inc. and Landstar Ranger Inc.

The class action suit charges Landstar has been violating the federal truth-in-leasing regulations in three different ways.

OOIDA is seeking refunds of alleged overcharges for fuel Landstar buys from truckstops when owner-operators use their Comdata-issued fuel card. It is also seeking refunds of alleged overcharges for base plates and permits that the company obtains on behalf of owner-operators.

Also, OOIDA is seeking refunds of chargebacks to or reductions from compensation for costs charged by U.S. Bank on Department of Defense shipments.

"The purpose of this suit is to correct these practices and to promote greater compliance with the federal regulations," OOIDA president Jim Johnston said. "When unscrupulous companies cannot subsidize their profits at the expense of its owner-operators they will have no choice but to raise rates to profitable levels or go out of business."

Landstar and its operating companies employ more than 8,000 owner-operators.

"I believe that the OOIDA lawsuit is self-serving," said Landstar chairman & CEO Jeff Crowe. "Landstar's business model treats its owner-operators fairly and as the true entrepreneurs they are. All of its programs are designed to benefit such third-party capacity and are the benchmark of the industry."

About the Author

Tim Parry

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry during this informative webinar, where experts will share insights on competitive...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!