Below are all the reports posted by truckstopandtravelstop.com
on the Comdata litigation.

07/20/2010

Comdata Lawsuit Litigants Await Key Decisions

Following a judge’s order in March to combine two separate suits brought by independent truck stop operators against Comdata and the major truck stop chains, parties to the suit are waiting on two more key decisions in the case. After consolidating the two cases and dismissing motions filed by Comdata parent Ceridian Corp. and the major truck stop chains to dismiss the case, U.S. District Judge James K. Gardner allowed those defendants to file motions to dismiss the consolidated case, which all have done.

Participants in the case expect the judge to rule on these motions within the next several weeks. If the motions to dismiss are denied again, the judge will then rule on whether or not to certify the lawsuit as a class action, which would extend the court’s ruling to other “similarly situated” independent operators.

One of the plaintiffs in the case, Pat Marchbanks, who operates Bear Mountain Travel Stop in Bakersfield, said he was “cautiously optimistic,” about the prospects for the case. “As a plaintiff, I am encouraged with the ruling in March,” Marchbanks said, noting that the case was “back on track,” with depositions and discovery ongoing.

The first lawsuit against Comdata was filed in the spring of 2007, with Marchbanks named as plaintiff. In July of that year, additional lawsuits were also filed against Comdata. These cases were folded into the first suit.

Independents truck stop operators resorted to filing the suit after failing to achieve an agreement with Comdata to amend the company’s two-tier transaction fee structure which it implemented in 1999 and 2000. Prior to implementing the new fee structure, Comdata charged all truck stops a flat rate per transaction involving Comdata’s fleet card billing system. The two-tier structure retained a flat rate for the national chains, but independent truck stops were hit with a fee based on a percentage of the total amount of each sale, which increased transaction fees for independents by more than 100 percent, in most cases, and by much more in others.

Comdata argued its fee structure was reasonable, given the fact it cost the company more to administer the system for independent operators as opposed to the chains. Plus, the chains record many more transactions per day giving them an economy of scale typical independents cannot match.

Working through NATSO and independent truck stop marketing groups such as PTP and AM-BEST, independent truck stop operators spent many hours in meetings with Comdata between 2000 and 2007 trying to reach an agreement on transaction fees. When these meetings ultimately proved fruitless, the lawsuits were filed.

The second lawsuit in the saga was filed in May 2009 naming not only Comdata, but its parent Ceridian Corp., as well as the major truck stop chains, TravelCenters of America, Pilot Travel Centers LLC and Love’s Travel Stops & Country Stores, Inc.

According to one truck stop operator involved in the suit, plaintiffs want to add Ceridian and the national chain truck stops as defendants to the original case because their lawyers believe they have uncovered information during discovery that suggests these defendants’ involvement is greater than originally believed.

Then in March of this year, Judge Gardner ordered that two lawsuits be combined into one suit in an order delivered in the U.S. District Court for the Eastern District of Pennsylvania. The March 25 order consolidates Marchbanks Truck Service, Inc., vs Ceridian Corp. (Civil Action No. 09-cv-2327) into the earlier lawsuit, Universal Delaware, Inc., et al vs. Comdata Corp. (Civil Action No. 07-cv-01078).

Below are all the reports posted by truckstopandtravelstop.com on the Comdata litigation.

04/22/2010

Lawsuits Combined in Comdata Case, Petitions to Dismiss Case Denied

U.S. District Judge James Knoll Gardner ordered that two lawsuits involving Comdata and its parent Ceridian Corp. be combined into one suit in an order delivered in the U.S. District Court for the Eastern District of Pennsylvania. The March 25 order consolidates Marchbanks Truck Service, Inc., vs Ceridian Corp. (Civil Action No. 09-cv-2327) into the earlier lawsuit, Universal Delaware, Inc., et al vs. Comdata Corp. (Civil Action No. 07-cv-01078).

The judge also dismissed petitions from four defendants seeking to throw out the complaints against them. Petitions by Ceridian Corp., Travel Centers of America, Love's Travel Stops and Pilot Travel Centers.

12/03/09

Class Certification Delayed in Independent’s Suit Against Comdata

Class certification in the Universal Delaware v. Comdata lawsuit will not take place on Jan. 6 after the judge hearing the case ordered parties to continue with discovery while he ruled on various motions.

06/30/09

Second Suit Filed in Comdata Case

An additional lawsuit was filed in May on behalf of independent truckstop operators in the Universal Delaware v. Comdata lawsuit. The new filing names Comdata, its former parent Ceridian Corp., and major turckstop chains TravelCenters of America, Pilot Travel Centers LLC and Love's Travel Stops & Country Stores, Inc.

As we reported earlier, attorneys for independent operators filed a motion April 6 to add Ceridian and the chains to the original complaint against Comdata.

According to one truckstop operator involved in the suit, plaintiffs want to add Ceridian and the national chain truckstops as defendants to the original case because their lawyers believe they have uncovered information during discovery that suggests these defendants’ involvement is greater than originally believed.

Plaintiffs’ attorney’s filed the additional lawsuit to give the trial judge in the case alternatives. He can choose to accept the amended complaint that now also names the national chains and Ceridian; or he can choose to consolidate the two cases into one.

Plaintiff attorney’s scheduled several depositions of former Comdata executives for July and August.

Plaintiff attorneys are preparing a brief for class certification which will be filed in July. The court hearing for class certification is currently scheduled for January 2010.

4/15/09

Motion Seeks to Add Defendants in Independent Operators vs. Comdata

NATSO reported in its April 13 Independent Update newsletter that independent truckstop operators had filed a motion “under seal” April 6 to add truckstop chains TravelCenters of America, Love’s Travel Stops & Country Stores and Pilot Travel Centers as defendants in their class action suit against Comdata. April 6 was the last day other parties could be joined into the suit.

TruckStopandTravelStop.com today confirmed that the motion also included adding Comdata’s former parent company, Ceridian Corp. According to participants in the case, Comdata spent March and early April taking depositions from plaintiffs.

2/3/09

COMDATA LITIGATION UPDATE

The on-going lawsuit brought by independent truckstop operators against COMDATA entered a new phase last month as a court/trial schedule has finely been put in place by the court hearing the case.

Operators involved in the dispute expressed relief that the suit has finally been scheduled. According to one plaintiff, there is now a “sense of hope there may be some real solution to COMDATA’s two tier pricing.

At the recent NATSO convention, all four of the independent marketing groups in attendance pressed their members to become involved in and/or support the suit.
Witness depositions have begun again and discovery is ongoing.

12/24/08

COMDATA VS. INDEPENDENT OPERATORS

Comdata and attorneys representing Independent Operators have finally agreed on electronic data file searches and custodial issues. This will allow the operators to begin discovery with Comdata and ensure access to the documents they are requesting.

There are still subpoenas out for document request from other third party billing companies, national truckstop chains and fleets.

The Independent Operators have retained an economist specializing in plaintiff anti-trust litigation.

Because of all the delays in document requests both sides agreed to request another 90 day extension in the current court schedule.

Attorneys representing the Independent Operators are said to the case is now moving forward in a positive and meaningful manner.

11/13/08

COMDATA VS. INDEPENDENT OPERATORS

Independent truckstop operators suing Comdata saw several positive developments in October that promise to get the case moving forward.

Independent operators won a victory when the court ordered Comdata to answer certain questions in the independent’s interrogatories that Comdata had been refusing to address.

Also, the judge is forcing Comdata to go back into the 1990’s with its answers to the interrogatories and discovery requests.

A spokesman for the plaintiffs said they thought Comdata would produce these documents soon and expected depositions to start again.

A March 2009 date for class certification has been set by the court with both parties agreeing to the date.

Plaintiffs also reported they were receiving documents requested from the national chain truckstops and other parties who are not named defendants in the lawsuit.

For additional information, a website has been developed for the class members of the class action lawsuit independent truckstop operators filed against Comdata and Ceridian.

9/23/08

INDEPENDENT OPERATORS VS. COMDATA UPDATE

Attorney’s representing the Independent Operators against Comdata recently deposed two former Comdata Executives; Tom Wagner and David Rewers. The depositions were very lengthy and both men were cooperative and forthcoming. The information from the depositions has not yet been made public and is still considered confidential at this time. Specifics are not available.

Five large national trucking companies have received requests for documents in the case of Independent Operators vs. Comdata. Attorney’s for the Independent Operators are assembling information and gathering data on market conditions for fleets in regards to selection and opportunities in third party billing industry.

Up until recently, Comdata and others have been uncooperative and very slow in the production of documents that have been subpoenaed. Just recently documents and information from Comdata and others have begun to trickle in to the attorneys representing Independent Operators.

For additional information, a website (click to follow) has been developed for the class members of the class action lawsuit independent truckstop operators filed against Comdata and Ceridian.

The first hearing on class certification is scheduled for Oct. 20 with a preliminary trial data set for early 2009.

7/7/08

HEARING DATE SET FOR COMADATA LAWSUIT

The first hearing on class certification is scheduled for Oct. 20 with a preliminary trial data set for early 2009.

The suit claims Comdata has harmed competition in the industry by using its market dominance to thwart rival card issuers in the market, costing independent truck stop operators millions of dollars in excessive fees.

The October hearing will determine if there are claims common to the entire class and whether given the large number of similar potential plaintiffs it makes more sense to go to trial as a class action rather than individual suits. The size of the class will ultimately determine the amount of damages.

Sources say that Comdata appears to be taking this action seriously and has been holding meeting with various industry groups and stakeholders. These sources also say that Comdata wants to limit any potential exposure and its strategy will be attempting to divide the industry into as many distinct segments as possible based on fuel sales volume, number of fuel card transactions and transaction fees charged
So far, Loves is the only national chain that has cooperated in providing documents requested by the plaintiffs. The other national chains are moving slow and our sources say another trip t court may be necessary to compel these chains to comply with document requests.

A website (click to follow) has been developed for the class members of the class action lawsuit independent truckstop operators filed against Comdata and Ceridian.

The first hearing on class certification is scheduled for Oct. 20 with a preliminary trial data set for early 2009.

The suit claims Comdata has harmed competition in the industry by using its market dominance to thwart rival card issuers in the market, costing independent truckstop operators millions of dollars in excessive fees.

So far, Loves is the only national chain that has cooperated in providing documents requested by the plaintiffs. The other national chains are moving slow and our sources say another trip t court may be necessary to compel these chains to comply with document requests.

Since the suit was originally filed in 2007, potential class members can go back four years – to 2003 to gather records. Those considering participating should begin collecting those documents right away.

Early participants in the suit have submitted electronic files of their business records including sales history, gallons sold, how fuel was purchased, credit cards used, types of fleet fuel cards accepted and transaction fees paid.

To learn more, go to www.lieffcabraser.com/comdatasuit.htm.