Owner-Operator Independent Drivers Association
1 NW OOIDA Drive, Grain Valley, MO 64029
Web site: www.ooida.com
Contact: Norita Taylor, norita_taylor@ooida.com
Headquarters: (800) 444-5791
For Immediate Release
GRAIN VALLEY, Mo. – February 12, 2009 – The Owner-Operator Independent Drivers Association (OOIDA) praised a decision by the U.S. Court of Appeals today in its lawsuit against United Van Lines, LLC. The 8th Circuit in St. Louis reversed a lower court ruling and held that court actions filed by small business truckers to enforce the federal Truth-in-Leasing regulations are subject to a four-year statute of limitations, rather than two-year limitations.
“It effectively doubles the length of time for which protection is available to drivers against motor carrier violations,” said Jim Johnston, President of OOIDA.
The 8th Circuit’s decision overturned a ruling by a federal judge in St. Louis, holding that such court actions would be barred after only two years. The opinion also cited with approval a decision by the 11th Circuit in OOIDA v. Landstar also holding that a four-year statute of limitations applied.
The court’s ruling came in a case filed by OOIDA and two of its members against United Van Lines, LLC. United Van Lines had argued that drivers could go back only two years in seeking damages under the law.
The 8th Circuit did not accept OOIDA’s position that motor carriers could not pass through the cost of public liability/property damage insurance (PL/PD) to drivers. Under federal law, motor carriers are required to maintain PL/PD insurance to protect the public, but the court held that there was nothing in the law that prevented such a pass-through to drivers.
“The charge-back of PL/PD insurance costs to drivers is an important issue that OOIDA will continue to address in the courts,” according to Johnston. The 8th Circuit’s opinion specifically avoided addressing the question of whether such charge-backs constitute a “forced purchase” forbidden by the regulations.
“Even if the regulations do not forbid the charge-back of PL/PD insurance as a general proposition, the court’s ruling does not give motor carriers a green light to impose these charges in ways that violate other parts of the leasing regulations,” said Johnston.
OOIDA has challenged PL/PD insurance charge-backs in other cases under a number of different legal theories.
“The opinion handed down in this case will certainly not be the last word on this subject,” said Johnston.
The Owner-Operator Independent Drivers Association is the national trade association representing the interests of small-business trucking professionals and professional truck drivers. OOIDA was established in 1973 and is headquartered in the greater Kansas City, Mo. area. The Association currently has more than 160,000 members from all 50 states and Canada.