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Flying J, Inc.

Case Summary

Case Name:

Owner-Operator Independent Drivers Association, Inc., Harold Landry, Jimmy Hux d/b/a Hux Trucking, Richard Kershman, and Laurel Barrick v. Concord EFS, Inc., EFS National Bank, Flying J, Inc., and Pilot Corporation

Court Name:

Chancery Court for Williamson County, Tennessee; Court of Appeals of Tennessee at Nashville

Case Filed:

4/7/1998

Allegations

This lawsuit was filed seeking damages and an injunction to stop the truckstop’s practice of charging more for diesel fuel when truckers used MasterCard or Visa credit cards.  The contract created by the credit card companies, the banks and merchants specifically included the promise not to impose surcharges on credit card purchases, and the complaint alleges that the cardholders should be able to enforce the promises made in those contracts. 

The Chancery Court ruled that OOIDA lacked standing to be a plaintiff and dismissed the case.  OOIDA supported four OOIDA members, Laurel Barrick, Harold Landry, Richard Kershman and Jimmy Hux,  in filing an appeal to the Tennessee Court of Appeals.  The Appeals Court entered a summary judgment in favor of the OOIDA members finding that Flying J and Pilot are liable for the claims of the trucker cardholders and that the plaintiff truckers have standing to bring the action as MasterCard and Visa cardholders. 

The defendants appealed to the Supreme Court of Tennessee, contending that the Court of Appeals erred in holding that the plaintiffs were intended third-party beneficiaries of the EFS-Flying J and EFS-Pilot contracts.  The Court held that the plaintiffs were not intended third-party beneficiaries. Accordingly the Court reverses the judgment of the Court of Appeals.

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