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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Good Evening, I need some legal advise about a Motor Vehicle

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Good Evening,

I need some legal advise about a Motor Vehicle Master Lease, that I feel is not a true contract. My husband is lease Purchasing a Tractor Truck from this company. He is suppose to be a independent contractor/ Owner operator. But they have him on force Dispatch and he can not come home when he wants. they tell him when he can come home. he has 3 escrow accounts with this company and he has to get permission to even use the money to fix the truck. please help ... they had him sign a different lease today. The company he is leasing the Tractor Truck from is not even on there the heading is of another company. on the schedule it doesn't even have a price value, just the payment amount and how many weeks ... thank you and I hope you can help me
Thank you for your post.

I am sorry for your husband's situation and will try to help you, but please be advised that while I can provide you with legal information, I cannot provide you with 'legal advice' as I am not your attorney. If you are seeking genuine legal advice you would need to retain local counsel to assist you. Would that suffice?
Customer: replied 4 years ago.

What I am looking for is answers because the vehicle purchase master lease is out of Minnesota so I would have to fly there to fight them in court if i find my answers i need to back up what i have found out already


Thank you for your follow-up, Cheryl.

I will do my best to help. Why do you feel the lease is illegal? What exactly is your husband leasing? When will he own the item, is that ever stated in the documents?
Customer: replied 4 years ago.

He is lease purchasing a Semi Rig. and i have been researching the lease contract and what is say in it ... i have learned by researching escrow accounts that they are to have an interest on it and they don't. they have it stated in there that they can take everything over 500 dollars should the truck need repairs and there is not enough in there to pay it all . like a week or two ago the tire flew off the back of the trailer and he had to wait for them to tell him where to go to get it fixed but remember he is a independent contractor / owner operator. then they guy who fixed the trailer told him this is not your fault and they took out 892 dollars out of his settlement . not his escrow .


I see. So under the lease (or under his employment contract) he is required to repair the rig where the employer tells him. So far those conditions are permitted, either from independent contractors or from lessees, the former because the employer can request that any property damaged while under their time and contract be repaired as they see fit, and the latter because if the asset (the rig) is still under their name, they can control how it gets repaired. For commercial leases, that is fairly standard. What else do you see that you feel may be questionable? Please advise, I want to get at the potential issue as much as you do.

Customer: replied 4 years ago.

there is a part that states a lessor an assignee and a lessee .. now they company is one name and on the master lease up top says someone totally different. i have been researching so much. they have it stated in there that my husband needs to supply the liability insurance and my husband told them he would, but they take it out of his settlement it states that he is to carry a liability limit of 1,000,000.00 and under their dot it states they carry only 750,000.00.


Does your husband purchase insurance from them, or does he buy it separately?
Customer: replied 4 years ago.

it states that my husband is to provide the liability insurance but they wont let him.

What do you mean they won't let him? Then is there any liability insurance on the vehicle?
Customer: replied 4 years ago.

yes they carry they policy. my husband told him he wanted the 1 mil on the truck due to anything can happen. and they only carry 750k . how can they state that the men that are purchasing these trucks to supply the liability insurance of 1mil in this lease and they don't even do it.

Thank you for your follow-up.

In that situation your husband can purchase an additional policy to cover the limit. That, by itself, also does not show that the contract is invalid. If they are no longer demanding that as the amount when they cover their own liability, that condition in the contract is deemed to have been 'waived' and is no longer actionable. That means that they cannot enforce that condition against your husband if they later claim that he is in violation.

Getting back to your question about different names on the contract, that may be an issue or it may be an example of a 'third party beneficiary' contract. Please allow me to explain. A 'third party' contract is where someone else benefits from the agreement. If I hire you to cut my neighbor's grass as an example, the neighbor is the beneficiary of the service but not a party to the contract. Similarly here one party may be the owner of the truck but payments for the lease will go to an another entity either as a direct assignment or based on contractual obligations. That also might be valid, although it does complicate the contract since it is then harder to figure out who are the parties and who can file in case in breach.

Hope that helps.

Customer: replied 4 years ago.

so what you are saying is the first contract that had they name of this same company that my husband is purchasing the truck from, ok I will give names now, on the first lease purchase the company name was Campbell trucking LLC which if I recall in my research their dot and MCFAS was not valid, but they company in the top of the lease was Campbell Trucking Inc. as in this one they had him sign today. it states he is to do a walk around with their mechanic and that didn't happen so he could write down everything that is wrong with it before driving off in it, there are parts in the new lease purchase agreement that refers to my husband as a renter not a lessee. which I am so confused over

Thank you for your follow-up.

That is usually how it is done. One company sells/transfers the truck over to your husband, the other company or business entity is in charge of financing and collection. That is not illegal or improper, even companies with large fleets such as Enterprise of Hertz have different business entities under their corporate umbrella where one may actually own the fleet, an another is in charge of re-selling of the fleet, and yet another may be the one that collects the fees from the lease. The difference between the renter and the lessee is of course a renter does not 'own' the item, so that change could be important--you need to review the contract to see if the language points to when the ownership of the rig is transferred from them to your husband, or how large of a period he has before he obtains title. Such conditions should be in the contract, either based on amount of payments or amount of money he has to pay, or the period for how long he has to lease the rig. Each contract has to have some sort of a conclusion, a permanent lease, unless so specified, is not valid.

Good luck.

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