The Supreme Court on Wednesday heard oral arguments in a case that could have ramifications on the contracts made between fleets and owner-operators and lawsuits that arise from those contracts.
In particular, the court’s decision could clarify a muddy procedural matter involving contract arbitration clauses and owner-operators, says Braden Core, a partner at Scopelitis, Garvin, Light, Hanson & Feary. Core attended the hour-long session before the Supreme Court on Wednesday morning.
The case involved owner-operator Dominic Oliveira and his former carrier New Prime, the legal name for the Springfield, Missouri-based Prime Inc. It’s the 15th largest fleet in the country and has contracts more than 5,000 independent contractors.
The key question before the nation’s high court is whether owner-operators are exempt from the Federal Arbitration Act of 1926. The act protects arbitration clauses within employer-employee contracts.
The Supreme Court’s decision is expected in early 2019.
The decision will dictate if an arbitrator should decide whether an owner-operator is exempt from the Arbitration Act if he or she brings a lawsuit against a carrier, or whether the courts should make that determination. The decision won’t address whether any ensuing legal proceedings should be handled by an arbitrator or the courts.
