O/O Escrow lost

L

Loadlooker

Member
Feb 25, 2010
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6
Ontario
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Hi everyone,
Sager went Bankrupt and O/O lost their $5000 escrow. Claims have been filed with KMPG but little chance of seeing it. Is there any benefit to Labour board or Lawyers to help?
 
Labor board will do/can do nothing as they are deemed independant contractors.

A lawyer may have some success (very doubtful) BUT if it is a true escrow account with a contract then it should have been kept in a separate account and not in the general operating account of the carrier. Were the O/O's paid any interest on these funds that were held in the escrow account?
 
No account and no interest. The monies were never in a seperate account and O/O are listed on the companies unsecured creditor list. Why can the owner of the company be named as a secure creditor? This is so unfair for the O/O.
 
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Escrow?

Loadlooker,

I believe that there might be an avenue of relief for the o/o's to get their hold back monies. These funds may be considered a trust, and therefore be subject to director's liability. Think about suing the directors of the company personally in small claims court.
 
Activet said:
Loadlooker,

I believe that there might be an avenue of relief for the o/o's to get their hold back monies. These funds may be considered a trust, and therefore be subject to director's liability. Think about suing the directors of the company personally in small claims court.
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I like the way you think Activet but how many members here that have an O/O's hold back actually keep it in a trust account and preferrably an interest bearing trust account. I'm betting none though I hope I am wrong.
 
Hold backs as a trust

ralphthetrucker said:
I like the way you think Activet but how many members here that have an O/O's hold back actually keep it in a trust account and preferrably an interest bearing trust account. I'm betting none though I hope I am wrong.
Click to expand...

I hope your wrong too, Ralph. But unfortunately, I don't think you are. I will always wonder why any O/O enter an agreement that wouldn't have some provision for the segregation, interest generation, and security of those funds. Then, those funds would always be available for their intended purpose, without the need of having to trust the carrier.

That being said, I think that there would be an incredible push-back from most carriers to that idea. Sort of like politicians pushing back against any measures that would screw the cap on the cookie jar a little tighter.

As far as an O/O suing a carrier's directors, I don't know how it would play out, but I think that the low cost of litigating on this novel approach (constructive trust), might provide some relief for the O/O, and hopefully instruct corporate directors of their potential liability.
 
Hi Loadlooker
Call Wayne @ 519-808-5770. He is in the same boat as you with Sager & the Ins. holdback issue. Perhaps you could both run at the director of the company.
Best of Luck
 
It's always unfortunate when yet another company has to file for bankruptcy....well of course if they are solid reputable outfits.....but secondly unfortunate that a hard working o/o must lose their holdback $$.

$5000 seems high. I checked into ours and it is only $2500. We have been in business for 40 years, we have some of the same o/o believe it or not...

Anyway if any o/o is currently looking for a reputable and soild company - contact me please.
 
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