Jan. 10, 2002, Grain Valley, MO - The U.S. Bankruptcy
Court (Southern District of Indiana) has granted a motion by the
Owner-Operator Independent Drivers Association (OOIDA) filed Dec.
19 to intervene generally in the bankruptcy proceedings of Burlington
Motor Carriers Inc.
Burlington had filed for voluntary reorganization under Chapter
11 of the United States Bankruptcy Code in July, shortly after OOIDA
and two of its members filed a complaint in U.S. District Court
in Indiana, claiming violations of the federal truth-in-leasing
"We are pleased with the speed in which the court has responded
to our motion to intervene," says OOIDA President Jim Johnston.
"By granting our participation in the bankruptcy proceedings
we are confident we'll be able to protect the interests of
the owner-operators who were leased to this carrier and their claims
against the company."
With the administrative dismissal of its original suit under the
bankruptcy protection, OOIDA chose to pursue its complaints against
the Daleville, IN carrier in the bankruptcy court.
OOIDA's lawsuit alleges that despite Burlington's agreement
and obligation to charge back premiums for insurance coverage purchased
through the company, it was violating federal truth-in-leasing regulations
by deducting amounts from owner-operator compensation substantially
in excess of the actual premiums. The complaint also alleges that
insurance information was not properly supplied by Burlington when
requested, which is also a violation of the regulations.
Founded in 1973, the Owner-Operator Independent Drivers Association
(OOIDA), is comprised of more than 72,500 owner-operators, professional
drivers, and small business truckers from all 50 states and Canada.
OOIDA represents the interest of this nation's more than 350,000
small business trucking professionals in the legislative and regulatory
processes at both federal and state levels.