Allied/North American offer $1.25 million settlement to owner-operators

Allied Van Lines and North American Van Lines negotiated an $8 million settlement in the fall of 2007 with truckers in a lawsuit about problems with their owner-operator leases, then filed for bankruptcy in February of this year with $5 million still due to be paid, according to OOIDA.

The Trucker News Services

5/7/2008

GRAIN VALLEY, Mo.  – The Owner-Operator Independent Drivers Association (OOIDA) reported Tuesday that Allied Van Lines and North American Van Lines have filed a revised bankruptcy plan under which owner-operators will receive $1.25 million due under the terms of a settlement agreement reached last year.

Under the terms of the Van Lines’ original bankruptcy plan, filed in February of 2008, owner-operators were slated to receive no funds.  However, OOIDA said it took an aggressive stand in the bankruptcy court, arguing that it would be in the best interests of the reorganized companies to ensure that their owner-operators received as much compensation as possible.   

Allied Van Lines and North American Van Lines negotiated an $8 million settlement in the fall of 2007 with truckers in a lawsuit about problems with their owner-operator leases, then filed for bankruptcy in February of this year with $5 million still due to be paid, according to OOIDA.

Originally filed in May of 2004, the truckers’ case alleged that the carriers’ leases failed to comply with federal truth-in-leasing regulations regarding compensation and chargeback disclosures. As part of the case settlement, Allied and North American were also required to implement a new uniform independent contractor operating agreement.

The court must still approve the revised bankruptcy plan, and the timing of payment will be determined at a future date.  The entire class is composed of approximately 4,000 owner-operators.