USA TRUCK Loses Lawsuit

I was looking around some and uncovered this gem. It would seem USA Truck has really screwed over this guy William Blankenship, Jr. The real crux of the matter seems to be right here,,,,


2. Agent Agreement

In June 2001, Blankenship and USA Truck entered into an Agent Agreement.

The Agent Agreement granted Blankenship exclusive responsibility for a portfolio of protected customer accounts (protected customers). The protected customers included Tuesday Morning Company (Tuesday Morning) and International Truck Company a/k/a SST Truck (SST).

USA Truck agreed to pay Blankenship a 5% commission on all revenue derived from the protected customers. USA Truck retained the right to terminate the Agent Agreement with ninety days notice. In the event of termination, USA Truck promised to refrain from hauling loads of freight for the protected customers for eighteen months after the ninety days passed. If USA Truck failed to refrain from hauling loads of freight for the protected customers during this eighteen-month cease period, USA Truck agreed to pay Blankenship "$200.00 for every load hauled . . . until another 18 month cease period has passed."

Blankenship worked for USA Truck under the terms of the Agent Agreement for approximately two years. On July 1, 2003, USA Truck notified Blankenship it wished to terminate the Agent Agreement on October 1, 2003. On October 1, 2003, USA Truck terminated the Agent Agreement.

3. Settlement Agreement

In 2006, USA Truck's Director of Sales, Pat Campbell (Campbell), informed Blankenship that USA Truck had violated the Agent Agreement. Campbell admitted USA Truck had hauled loads of freight for Tuesday Morning since October 1, 2003. When Blankenship asked Campbell how many loads USA Truck hauled for SST, Campbell falsely "represented . . . [USA Truck] had been hauling an average of two loads a week." USA Truck's president and general counsel later ratified Campbell's false representations. USA Truck misled Blankenship to induce Blankenship into accepting a relatively low settlement offer.

Based upon Campbell's representations about the number of loads USA Truck had hauled for the protected customers, including but not limited to SST, Blankenship agreed to release USA Truck from liability for breaching the Agent Agreement in exchange for $85,000. On March 6, 2006, Blankenship and USA Truck executed the Release and Settlement Agreement (Settlement Agreement). The Settlement Agreement contained the following no-reliance clause:

It is understood and agreed that this is a settlement and compromise of doubtful and disputed claims . . . [and] that no statement or representation by or on behalf of any person, entity or party hereby released, or their agents or representatives, concerning the nature and extent of any losses, commissions or damages, or legal liability therefore, has been made or considered by the undersigned in executing this [Settlement Agreement].

. . . .

THIS AGREEMENT CONTAINS THE ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO AND THE TERMS OF THIS RELEASE ARE CONTRACTUAL AND NOT A MERE RECITAL.

Several months later, "an independent source" told Blankenship the truth: USA Truck "had been hauling ten to fifteen loads a day [for SST], instead of the two loads a week as represented by [Campbell]." Blankenship alleges he would not have settled with USA Truck for only $85,000 if he had known of Campbell's false representations. Blankenship estimates USA Truck's deceit cost Blankenship over $1 million.




It would appear if these allegations prove to be true somebody in USA Trucks management past or present has a serious problem with the truth. I understand an appellate court has reinstated this lawsuit, and it's due to be tried soon if not already. I wonder, does anybody have any updates or news about this now active case?

 

I bet the lawyers are getting paid well. While we get screwed 30 to 50 miles each trip.

 

How are you getting screwed on each trip?

 

Each trip is a certain amount of practical miles. They shave 30 to 50 on each trip. You'll be driving sometimes an hour before you start even getting paid.

 

Do you think USA is the only company that doesn't pay actual miles?

 

I didnt say they were. We can also pull up practical miles on our smart phones. its still short.

 

we are not getting screwed when we hire on and agree to work all that is made pretty clear.Not many companies pay actual miles or hub miles

 

You mean you before hand knew that they were going to do this. You agreed to it?

 

If your a driver so did you. USA pays practical miles, like most carriers.

{thinking to myself........"you can't be serious right now"}

 

yes Klatu i am very well aware of this.When i drove local was paid the same way.They tell you in orientation and like goodchoice just stated this is the case with most companies