A U.S. District Court has denied a motion by Swift Transportation and its subsidiary companies to dismiss a lawsuit filed by the Owner-Operator Independent Drivers Association (OOIDA).
Swift sought dismissal by arguing that the plaintiff owner-operators did not have a private right of action under federal leasing regulations and, therefore, the court had no jurisdiction.
In July, OOIDA and 10 of its members filed the class action against Swift Transportation Co. Inc. (AZ), Swift Transportation Co. Inc. (NV), M.S. Carriers Inc. and M.S. Carriers Warehousing Distribution Inc., maintaining the leases of Swift and M.S. Carriers violate federal truth-in-leasing regulations.
OOIDA said the leases fail to contain a number of provisions required by 49 C.F.R.§379.12 and also contain provisions in direct conflict with the leasing regulations.
The carriers are also accused of failing to provide owner-operators with required documentation for chargebacks against compensation; forced purchase of insurance and other products and services; illegal deductions from escrow accounts; and failure to return escrow accounts within the required time after termination.