The Owner-Operator Independent Drivers Association (OOIDA) said the U.S. Bankruptcy Court for the District of New Jersey has approved a $1 million class action settlement of their long-standing dispute with Gilbert Express Inc.
In October 2000, OOIDA filed a class action lawsuit in federal court against the Linden, NJ, motor carrier on behalf of individual owner-operators. The association alleged that Gilbert had engaged in a long-term, systematic practice of unlawfully violating the federal truth-in-leasing regulations and defrauding their owner-operators.
The terms of the settlement include the payment from Gilbert Express in the sum of $1 million into a settlement fund, which covers about 1,100 owner-operators who leased equipment and services to Gilbert Express from October 1996 through June 2001.
Gilbert Express is also required under the settlement to comply with federal regulations by using the form of agreement Gilbert negotiated with OOIDA. In addition, current drivers with Gilbert Express will have their escrows guaranteed by other companies associated with Gilbert Express for a period of three years.
Owner-operator class members will receive settlement awards based upon their total known gross linehaul revenue during the class period as a percentage of the total known gross linehaul revenues for the entire class.