Truth-in-leasing lawsuit ends with $3.35M settlement
A class of nearly 1,000 truck drivers accepted a $3.35 million settlement with C&K Trucking after filing a lawsuit that alleged violations to the Truth in Leasing Act.
An Illinois federal court judge in February granted final approval of the lawsuit settlement between Chicago Ridge, Ill.-based C&K Trucking and owner-operators it hired.
The lawsuit claimed the trucking company took illegal deductions from owner-operators’ paychecks and violated the Truth in Leasing Act.
Allegations
The lawsuit accused C&K Trucking of violating the Truth in Leasing Act, breach of contract and fraud.
Valinda Stephens and Bernard Shurn contracted with C&K Trucking in May 2019 under the business name BNVS Transport.
Stephens frequently found that her pay did not match up with quoted rates. That was when she was able to obtain quotes, which was not always guaranteed.
According to court documents, Stephens did not receive itemizations or documentation explaining charge-backs. In the rare instance when Stephens would receive such documentation, the itemizations often would be less than was actually deducted from her pay.
The lawsuit alleged that when Stephens would contact C&K Trucking management about these discrepancies, she was mostly ignored. When Stephens would get a reply, answers to her questions were “opaque, contradictory and misleading,” according to the complaint.
Additionally, plaintiffs accused C&K Trucking of violating the Truth in Leasing Act. Specifically, the company is accused of frequently taking longer than 15 days to pay drivers for loads.
Stephens also claimed that the trucking company consistently did not provide her with the rates up front. In cases when Stephens was given the rate ahead of time, C&K Trucking would frequently pay her local rates rather than regional rates.
In other cases, the trucking company would unilaterally change the rate without the owner-operator’s knowledge. For example, Stephens claimed she was quoted a rate of $615 to haul a load for Berco, a manufacturer. However, C&K Trucking allegedly lowered the rate for Berco without informing Stephens. Consequently, she was underpaid by hundreds of dollars.
By settling, the trucking company does not admit guilt to any of the claims. LL