Court grants OOIDA motion to intervene generally in Burlington bankruptcy

| 1/10/2002

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 regulations.

"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.