Another Leasing Scam--advice please

Discussion in 'Trucker Legal Advice' started by Tez, Aug 21, 2012.

  1. Tez

    Tez Light Load Member

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    Jun 23, 2011
    Bradford, PA
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    I have roughly $12000 in truck payments, $8000 this year. All other expenses minus fuel totals around $48,000. I'm only looking to get the payments I made and the maintenance that I did, reimbursed since they violated the contract and not me, then terminated it when I called them on it. They also can't really claim any depreciation as all the drivers that got the trucks after me were charged at least $5000 more than what I was being charged for the same truck in the condition that I left it in.

    That reminds me, isn't there a law, if not federal, a state law in PA that says that they have to hold the truck in the same condition for 30 days to allow me to find my own financing? They had another guy driving it 3 days later, 2 days before the so called maintenance that they are claiming that they did on it.
     
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  3. Tez

    Tez Light Load Member

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    Jun 23, 2011
    Bradford, PA
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    I'm not really sure how I would be avoiding paying taxes whether I'm an independent contractor or an employee, both have to pay taxes. I didn't have a lawyer look at it because I read it and it's a solid lease and it was a solid contract, they didn't follow the conditions though.

    By the way, I found a typo in the contract that says "Other than normal wear and tear, contractor is responsible for his own repairs." Wouldn't that mean that all the normal wear and tear on the truck should have been paid by the company? Stupid question, I know, but I also found another one that I can't wrap my head around. There is a line that says "If contractor terminates the contract then he forfeits his last pay for insurance and maintenance". I didn't terminate it, the company did, so shouldn't I have gotten my last check minus fuel, truck and trailer payment, and escrow?
     
  4. crb

    crb Road Train Member

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    Not sure what they charged the other drivers comes into play. You have a contract and potentially a breach of contract case. So you have $21,000 in forced maintenance that you didn't approve, money left in your maintenance account, and money you paid for their cell? I think you are really stretching it trying to get the truck payments back.
     
  5. Tez

    Tez Light Load Member

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    Jun 23, 2011
    Bradford, PA
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    It might be a stretch, but that's an asset that I lost due to their breach of contract.
     
  6. G/MAN

    G/MAN Road Train Member

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    Something was mentioned about turning the company into the IRS and whether you are an employee or an independent contractor. How an individual is classified determines who is responsible for the taxes. If the company failed to follow the terms of the contract then that is a matter for the lawyers and courts, not the IRS.


    That wasn't a typo. It is common for this type of contract. It basically means that you are responsible for any excess wear and tear. If there are rips in the interior that would not be considered normal wear and tear. If you failed to properly perform normal maintenance it could cause excess wear on the engine and components which could be considered excess wear and tear. This provides some protection for both you and the company.

    It is difficult to comment on part of a contract without being able to read the entire agreement. You need to check with a lawyer if you think that the company broke the agreement. The
    se things usually have a time frame in which you must file a lawsuit or complaint with the court. I don't know that you will need to file suit. Sometimes just getting a letter from an attorney could get their attention. You might get a lawyer to write a letter to the company for about $50. But, the first thing you need to do is to find out if there is any liability. The best way to find out about the liability is to talk with a lawyer. Since you no longer have the obligation of leasing a truck you should be able to easily find a driving position and could find an attorney once you get a paycheck or two.
     
    Last edited: Aug 24, 2012
    mamamullins Thanks this.
  7. Tez

    Tez Light Load Member

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    Jun 23, 2011
    Bradford, PA
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    I have found another job, but I had to take a local job that doesn't pay as much to handle this. The meeting with the attorney is tomorrow afternoon.

    I brought up the IRS definition of independent contractor and employee to show that they treated me as an employee. That is a federal institution defining that. I intended nothing about taxes, but if they treated me like an employee (no say in what I did or how and when it would be done [within reasonable limits]) then I shouldn't have had the financial obligations of an independent contractor. That's a long shot too, but I'm sure these are things the lawyer will want to discuss with me. BTW, I only brought it up because I saw in another thread that a person was asking how they can consider you an independent contractor if it is their truck and they can fire you.
     
  8. G/MAN

    G/MAN Road Train Member

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    When you lease a truck from a carrier you are assuming all the responsibilities of an independent contractor, which includes all taxes. The services of an independent contractor can be terminated at will with most contracts. In fact, most owner operators who lease to a carrier sign "at will" contracts. In other words, either party can terminate the agreement at any time and for any reason or NO REASON.

    As far as any equity, you don't have any equity. You were leasing the truck. When you lease equipment you don't own it. So, you did not lose an asset since you didn't own it. Some have a buy out at the end of the lease or a means of owning the truck if you complete all the payments. With a lease purchase the owner is the trucking company, not the one who is leasing the truck. I would not think that you would have any recourse to get your money back for lease payments. If you had gotten conventional financing then you might have some recourse. As to whether the company can pull money out of your maintenance account to make repairs on the truck, that will depend on what is stated in your lease agreement. You may or may not have grounds for a breach of contract lawsuit. It will be interesting to see what your attorney has to say about it.
     
    scottied67 Thanks this.
  9. Tez

    Tez Light Load Member

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    Jun 23, 2011
    Bradford, PA
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    I didn't have a lease, I had a contract of sale. Lawyer said they are very different. He also said to bring in a report of all my expenses and have it broke down into categories. He also said as far as the IRS and Worker's Comp is concerned, I am an employee and it doesn't matter what the company called it. Wants to go over all of the paperwork, get my consent to show it to a Safety Coordinator that he knows, and see which way we're going to handle it. Also said as far as he is concerned this is one of the bigger scams that he's seen and he's very intrigued by it and wonders why no one else has taken him to court for it yet.
     
  10. G/MAN

    G/MAN Road Train Member

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    I guess that I must have misunderstood what you previously posted. I thought that you stated that you were doing a lease or lease purchase. I don't see how you could be buying a truck, leasing it to a carrier and be considered an employee. It will be interesting to see how this unfolds.
     
  11. Tez

    Tez Light Load Member

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    Jun 23, 2011
    Bradford, PA
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    Well, I thought I was. What the deal was though is that instead of leasing it, I had a contract to buy the truck by making $250 payments per week. Lawyer said it wasn't a lease but a contract of sale. There weren't many stipulations on the contract of sale itself, just that I had to make the payments, which I did. Then there was a separate contract for owner operators between myself and the company and that had all the stipulations in it.

    There was a lot more to this than I could type on here in the original post, but I didn't want to write a book. It took right around 2 hours to go over everything with the lawyer.

    The lawyer told me that what makes me an employer is the fact that if I didn't want to haul a particular load, or if I wanted to go home, I couldn't turn down a load or go home if I wanted. I was told what days I had to work and was forced to haul whatever they wanted me to. Even with "freedom of action" (deciding where to purchase fuel and which routes to take) that didn't make me an independent contractor.
     
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