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New Prime I

Case Summary

Case Name:

OOIDA v. New Prime, Inc.

Court Name:

U.S. District Court for Western District of Missouri

Case Filed:

8/18/1997

Allegations

Violation of Truth-in-Leasing regulations by keeping owner-operators’ maintenance and security deposit escrow accounts if the owner-operator terminates their lease agreement early.

The court ruled that owner-operators who signed leases prior to Jan. 1, 1996, the effective date of the ICC Termination Act, could not prosecute their claims under the federal truth-in-leasing regulations without imposing impermissible retroactive effects.  Subsequently, the federal judge in Springfield, MO announced that he would award attorney fees and costs in excess of $500,000 to New Prime. OOIDA appealed the decision to the Eight Circuit. That court has now agreed with OOIDA and has overturned the lower court’s fee award to Prime.

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