When
Intrenet Inc. and its subsidiary trucking companies announced
Jan. 2 they were ceasing operations and filing bankruptcy,
the dominoes fell.
by René Tankersley, feature editor
Unfortunately, most
of those impacted by this domino effect were the 1,100 owner-operators
who had the misfortune of being leased to one of the Intrenet
companies Eck Miller Transportation, Roadrunner Trucking,
Roadrunner Distribution Services and Advanced Distribution System.
For now, owner-operators may be considered unsecured creditors
in the bankruptcy, and are left holding the bag, and in some
cases the bag included rubber checks returned from
the bank marked refer to maker. OOIDA filed a lawsuit
to separate escrow funds from the bankruptcy since this money
belongs to the owner-operators and never belonged to any Intrenet
company.
The stories of owner-operators Bill and Sue Stokes, Jay and
Linda Taylor, Tommy and Delene Sumpter, and Delenes father
James Yancey are only a small portion of the 1,100 small business
truckers who lost thousands of dollars when Intrenet went belly
up. For each of these four stories, there are hundreds of owner-operators
with similar stories.
Bill
and Sue Stokes
Stokes Trucking, Abilene, TX
Bill and Sue Stokes had five trucks leased to Roadrunner Trucking
when Intrenet dropped the bomb that shut them down. Bill and
his drivers had just dropped four loads the previous day and
called
the dispatcher Jan. 3 for another load. It was then that the
terminal manager Damon Garvin asked him to come into the Roscoe,
TX, terminal for an office meeting.
When he got there it wasnt a meeting, Sue
Stokes said. All it was, was to turn load paperwork in,
trailer placards, etc. They were told they would be paid for
the loads that have already been turned in but probably not
for whats been turned in today. Lonestar Transportation
was there, offering leases to owner-operators.
Although they leased on somewhere else quickly, Sue says they
were left with more than $13,000 in bad checks from Roadrunner
Trucking. The company also did not return the Stokes $4,000
escrow fund. As a result, the Stokes filed Chapter 13 bankruptcy.
Although Chapter 13 allows companies and families to reorganize,
the Stokes were forced to
sell all their trucks and equipment, except one truck and one
trailer.
This put me in one hell of a situation, Bill Stokes
said. It put a damper on my life and my marriage.
They only let us keep one truck and trailer so [Bill]
could make a living, Sue said.
We got to keep our home as long as we can make the payments.
Sue says she is devastated by how all this has affected their
credit rating, which was good until they were forced to file
bankruptcy.
The saddest part is that weve always been so conscientious
about our bills. Were the type that pay our bills and
then we eat, Sue said. Weve been married 35
years. For all this to come around at this time in our life,
its been pretty bad.
Bill followed his terminal manager Damon Garvin to Kelly Truck
Line, according to Sue, who keeps books for her husbands
trucking business and works for a local utility company. She
believes her family will survive despite the bankruptcy.
Were just determined enough to do so, Sue
said. We dont
want them to come in and take everything weve got. Our grown children and four grandchildren are the only things
that pulled us through this.
As she talked and laughed about her grandchildren, Sue added,
Weve got to laugh to keep from crying.
Jay
and Linda Taylor
Taylor Transportation Services Inc. Clarksville, IN
Jay and Linda Taylor had 17 trucks leased to Eck Miller Transportation
when it all went down with Intrenet. When it was
all over, the Taylors were without their $15,393 escrow fund
and were left holding at least two bad checks totaling $17,575.
In total, Linda Taylor says the shutdown cost their company
$100,000, but she admits they were more fortunate than the little
guy with one truck and a family to support.
We had a lot of our fleet paid for, that was a savings
for us, Linda said. We were able to go to our banker
and borrow money to replace the lost funds.
Lindas main complaint is the bad checks and how
it went down.
I feel my checks should have been made good, Linda
said. That money is due us. And, our escrow should be
given back. If we were to get our escrow money back and our
bad checks, that would thoroughly make me happy. We
lost a lot of money, and were trying to dig out of it.
After what happened to Eck Miller, the Taylors are apprehensive
about putting most of their trucks with one carrier. Their trucks
are now split between three carriers. Were real
leery as to the economy and how the trucking industrys
going to survive, Linda said. Carriers are going
out of business every day.
The Taylors did business with Eck Miller for more than 20 years
and saw the company change owners numerous times. I miss
Eck Miller every day, Linda said. It was a good
company with the respect of all their customers.
Eck Miller had good people, good agents, Linda said.
Everybody just went to different companies. Theyre
like a jigsaw puzzle thrown in the air and they landed everywhere.
James
Yancey Tyler, TX
Tommy and Delene Sumpter
Neches, TX
With two trucks leased to Road-runner Trucking, James Yancey
was looking forward to retiring, but he says the Intrenet bankruptcy
crushed his retirement dreams.
Im 60 years old, and was working to get out of the
truck and let the trucks make me a living, Yancey said.
This knocked me back probably three or four years that
Ill have to stay in the truck. It almost put me out of
business.
With Roadrunner owing him about $27,000 dollars, Yancey holds
nothing back when discussing Roadrunner and bankruptcy.
You get a phone call one day and the company isnt
there no more, Yancey said. And
the head man of that outfit was on vacation in the Bahamas at
the time.
After hearing about the bankruptcy from his agent, Yancey made
another shocking discovery. The load settlements that were usually
direct-deposited into his bank account had not been made for
almost 30 days. He had a few hired drivers that depended upon
him for their paychecks. How was he going to pay his drivers?
I had to go to them and tell them if you stick with me
I can make it, but I cannot pay you on time, Yancey said.
First, I paid them two weeks late, then one week late,
and then got caught up. I was late on my truck payments too.
Theres times when that $1,000 escrow money would have
helped out. It just isnt right people can do this and
get away with it.
Yanceys family was affected twice by the Intrenet shutdown.
His daughter, Delene, is married to owner-operator Tommy Sumpter,
who had his truck leased with Roadrunner. The couple has a year-old
daughter, and Delene graduated from nursing school in May.
Yancey and Sumpter followed their agent from Roadrunner to Pacer,
where they are now leased. Sumpter estimates Roadrunner owes
him about $6,200 in load settlements and $1,000 in escrow money,
plus hes holding three bad checks from Roadrunner totaling
$7,000-$8,000. When he talks about Roadrunner and Intrenet,
Sumpter doesnt hold anything back.
The whole thing pissed
me off, Sumpter said. We should have
had some kind of explanation. You couldnt talk to any
of the big dogs there. When all this went down, the head man
caught him a cruise. I hope somebody hangs him from a tree by
his nuts.
OOIDA
sues on behalf of owner-operators Within days of the Jan. 2 shutdown of Intrenets subsidiaries, OOIDA attorneys sent a formal demand on behalf of the association for the return of all escrowed funds to the drivers. OOIDA is the only one doing anything to help us get any of our money, Tommy Sumpter told Land Line. The letter, dated Jan. 9, 2001, was addressed to David F. Isler, senior vice president of Huntington National Bank, one of Intrenets largest creditors and the financial institution with dominion and control over Intrenets funds. It is our understanding that these funds may be under the dominion and control of Huntington National Bank, or may have been swept by the bank from accounts of Intrenet or its subsidiaries, the letter said. In any event, we have been advised by the CEO of Intrenet that the funds can only be returned with bank approval. Additionally, the letter gave the bank until 5 p.m. EST on Jan. 12, 2001, to return the money before taking legal action. The funds were not returned, and on April 5, OOIDA filed an adversary proceeding in the bankruptcy of Intrenet Inc. and its four motor carrier subsidiaries. OOIDA also filed claims against the bank. The lawsuit is filed as a class action on behalf of all owner-operators under lease to any of the four motor carriers. In its complaint, OOIDA seeks to separate from the bankruptcy estate, the escrow funds held by the defendants at the time of the bankruptcy. The suit also requests the immediate return of all escrow funds to individual owner-operators prior to the payment of the amounts due to creditors. Escrow funds collected by motor carriers from owner-operators under lease to the carriers are monies that belong to the owner-operator, said Jim Johnston, president of OOIDA. Those funds are not assets of the motor carrier, and the motor carrier has no beneficial interest in that money. Under the federal truth-in-leasing regulations, which govern administration of owner-operator escrow funds, this money may only be used to satisfy obligations incurred by the individual owner-operator, and in all circumstances, must be returned to the owner-operator within 45 days of termination of his lease. At press time, OOIDA reported that the answer from the lawsuits defendants was due in May. |