Fleet Management News & Business Info | Commercial Carrier Journal
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LEADING NEWS, TRUCKING MARKET CONDITIONS AND INDUSTRY ANALYSIS P art of appealed multijurisdic- tional litigation ongoing for years, the Kansas Supreme Court last month answered two questions put to it by the U.S. Seventh Circuit Court of Appeals relative to the question of whether a class of about 500 FedEx Ground drivers were classified prop - erly as independent contractors. "The plaintiff drivers are employ- ees," the court stated. "FedEx has established an employment rela- tionship with its delivery drivers but dressed that relationship in indepen- dent contractor clothing." As it did following a ruling of the Ninth Circuit Court of Appeals concerning a class of California driv - ers, FedEx issued a statement express- ing its fundamental disagreement with the decision and its commitment to protect "the rights of thousands of independent business owners to con - tinue owning and operating their own businesses. More than 100 state and federal decisions – including that of the U.S. Court of Appeals for the D.C. Circuit – have upheld our contractual relationships with independent busi - nesses. At this time we are considering available options." The decision applies to "mostly former" at this point, the company noted, "independent contractors operating in Kansas from 1998-2007. The model that the court reviewed is no longer in use. Since 2011, FedEx Ground has only contracted with incorporated businesses, which treat their drivers as their employees." – Todd Dills N avistar-International last month filed a motion requesting consoli- dation of the more than two dozen lawsuits brought against it over alleged problems with its exhaust gas recirculation- only engine line, along with 21 other similar lawsuits the company is expecting to come. The Oct. 3 request was filed with a federal judicial panel on multidistrict litigation, according to court documents. Navistar says in the motion that it is fac- ing 15 lawsuits in federal courts across the country and 11 suits in state courts. It also says it has received notices of intents to sue from 21 other parties. All of the lawsuits make similar allega- tions, Navistar says: that the company knew its 2008-13 model MaxxForce engines were defective but concealed that information from buyers. Navistar was the only major North American manufacturer to use EGR alone to try to meet 2010 emissions standards. All others opted to adopt selective catalytic reduction. In its Oct. 3 filing, Navistar asks that the suits be not only consolidated but also transferred to a federal district court in Illinois to be heard by Judge Joan B. Gottschall. Navistar headquarters are outside of Chicago, and most of the documents and witnesses in the cases are in Illinois, Navistar says. A federal judge ruled in August against a Navistar request to dismiss some of the lawsuits brought against it. – James Jaillet Scan the QR code with your smartphone or visit ccjdigital.com/news/subscribe-to-news- letters to sign up for the CCJ Daily Report, a daily e-mail newsletter filled with news, analy- sis, blogs and market condition articles. COMMERCIAL CARRIER JOURNAL | NOVEMBER 2014 7 FedEx Ground contractors deemed employees in Kansas Supreme Court Navistar seeks to consolidate engine lawsuits The International ProStar was powered by Navistar's MaxxForce engine line in the years concerning the lawsuits.