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Allied Van Lines

Case Summary

Case Name:

OOIDA v. Allied Van Lines, Inc. and TFC, Inc.

Court Name:

U.S. District Court for the Northern District of Illinois

Case Filed:

5/4/2004

Allegations

OOIDA filed a class action suit alleging that AVL and TFC violated federal Truth-in-Leasing regulations including improperly charging owner operators for PL/PD coverage, failing to provide rated freight bills, and failing to return escrows within 45 days of termination. 

AVL and NAVL actions were settled for $8 million in April 2007, and following class notice proceedings, the first settlement installment of $3million (net of fees and expenses) was available for distribution to the class in December 2007.  The highest amounts ranged from $800-$900 for owner-operators who were under lease to the Van Lines during the entire class period.  The second installment of $3 million was due to be paid by the Van Lines in May 2008, and the third payment of $2 million was due in May 2009.

In February 2008, the Van Lines filed for Chapter 11 bankruptcy protection, in which they sought to completely discharge their liability for the remaining sums due under the settlement.  OOIDA counsel aggressively litigated the bankruptcy case, and secured a %25 recovery on behalf of the class ($1.2 million).  The final payment from the Van Lines was collected on September 30, 2008 and the final distribution of the monies collected was completed in mid-2009.  Overall, we recovered $4.2 million.

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