Drivers win $10.4M verdict in contract dispute with Michigan carrier

From Yahoo Finance: 2025-05-02 15:32:00

A group of 100 truck drivers in Michigan won a $10.46 million judgment against a carrier for shorting them on cross-border freight payments. The judgment, tripled under RICO provisions, awarded $3.5 million in damages. The drivers, owner-operators, claimed they were defrauded of promised compensation for hauling freight in the U.S.

The dispute centered on whether drivers were owed 80% of customer revenues without deductions for international transport costs. RSP Express Inc., the defendant, argued the 80% didn’t apply to cross-border freight. The judge ruled in favor of the drivers, stating the contract didn’t allow deductions for third-party international transport costs.

RSP Express allegedly underreported gross revenues to drivers, resulting in significant underpayment. The judge found in favor of the drivers’ civil RICO claim due to fraudulent statements sent habitually. RSP Express did not immediately respond to requests for comment. The attorney representing them could not be reached for comment.

The drivers, represented by Detroit-based firm Miller Cohen P.L.C., hailed the judgment as a major victory for working people. The class action lawsuit revealed years of underpayment, leading to the significant ruling in favor of the drivers. The victory highlights the importance of upholding fair compensation for hard-working individuals in the industry.



Read more at Yahoo Finance: Drivers win $10.4M verdict in contract dispute with Michigan carrier