Landstar System Inc will appeal the ruling of the United States District Court, Middle District of Florida, certifying a class action in the lawsuit Owner-Operator Independent Drivers Association Inc, et al v Landstar System Inc, et al.
In this lawsuit, the Owner-Operator Independent Drivers Association Inc (OOIDA) and four named owner-operators allege that Landstar's contractual agreements with its independent owner-operators, which Landstar refers to as business capacity owners (BCOs), do not strictly comply with certain disclosure requirements of the federal leasing regulations. The court's class certification ruling is purely procedural and in no way addresses whether the plaintiffs' claims have any merit.
BCOs leased to Landstar are small-business owners who own and operate the capacity necessary to transport freight for customers of Landstar. Operating under the Landstar umbrella, BCOs can compete on a level playing field with even the largest competitor trucking companies and still enjoy the freedom to make their own decisions and run their businesses as they see fit. Landstar BCOs determine which freight they haul and when they haul it. Landstar also makes available discount purchasing programs to its BCOs to help reduce the costs associated with owning and operating their businesses. While participation in these programs is wholly voluntary on the BCO's part, the discounts available to Landstar's BCOs under the programs are significant.
This procedural decision relates only to Landstar Inway Inc, Landstar Ligon Inc, and Landstar Ranger Inc. Earlier in the case, Landstar won dismissal of all claims against Landstar System Inc, Landstar Express America Inc., Landstar Gemini Inc, and Landstar Logistics Inc.
