The Cullen Law Firm Announces Filing Class Action Lawsuit Alleging Profiteering on Hurricane Katrina Relief Shipments

30 October 2005

The Cullen Law Firm announces the filing of a class action lawsuit in the U. S. District Court in Ocala, Florida charging that small business truckers are being denied proper compensation for Hurricane Katrina relief efforts. The complaint, filed on behalf of the Owner-Operator Independent Drivers Association, Inc. and three small business trucking firms, alleges that Lipsey Mountain Spring Water of Norcross, Georgia, contracted with the State of Florida to receive between $1,600.00 and $2,000.00 dollars per day for holding trucks loaded with bottled water and ice on 24 hours per day standby. Now that the emergency is over, Lipsey and its freight broker are offering to pay only $600.00 per day to the small business truckers who actually did the work.

“The State of Florida agreed to pay premium compensation for emergency relief work, but only a small part of the compensation is actually going to the trucking concerns that actually did the work,” said Paul D. Cullen, Sr., counsel for the plaintiffs. The complaint alleges that the small business truckers should be treated as third party beneficiaries under Lipsey’s contract with the State of Florida bypassing middlemen who are attempting to keep all of the profits for themselves.

4 Points Logistics, LLC, a transportation broker located in Leesburg, Florida, has also been named as a defendant. The complaint alleges that 4 Points promised to pay the trucking firms $60.00 per hour for each hour of “Detention,” but then reneged after the emergency was over. 4 Points is now trying to limit the hourly payments to only 10 hours per day. Plaintiffs seek damages against 4 Points for breach of contract.

“The ability of state and federal relief agencies to attract drivers for future emergencies could be seriously jeopardized if middlemen are allowed to retain compensation designed to attract drivers for this hardship kind of duty,” said Mr. Cullen. According to Mr. Cullen, similar problems exist under FEMA emergency relief contracts and his law firm has been asked to address those problems in the near future.

Individuals who have hauled emergency supplies during the recent hurricanes and who believe that they have not been properly compensated are encouraged to contact The Cullen Law Firm at email protected from spam bots. To view a copy of the complaint, please visit The Cullen Law Firm’s website at www.cullenlaw.com.

For additional information, please contact:

Paul D. Cullen, Sr.
The Cullen Law Firm, PLLC
1101 30th Street, NW
Suite 300
Washington, DC 20007
(202) 944-8600 ext 777
(202) 944-8611 [fax

Reference:
Middle District Court of Florida
Ocala Division 5:05-CZ-440-OC10 GRJ