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ok I will this is about the owner operator contract he is under

with the same company it...
ok I will this is about the owner operator contract he is under with the same company it states in there that there is three escrow accounts and at the end of the three it says this escrow money may also be used towards truck expenses. but as I said before the cost of that tire repair was 1530.00 and my husbands manit. escrow was only short 200 dollars but his other escrows had that to cover it but they took the money out of his settlement. do they not know their own contracts
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Answered in 7 minutes by:
12/1/2012
Dimitry K., Esq.
Category: Legal
Satisfied Customers: 41,221
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Thank you for your question and thank you again for requesting me to assist you further. I also appreciate your rating and your tip for your first question.

Hmm, let me try to get at the bottom of this concern also. Does the contract state that they must first go toward all escrow accounts, or are each escrow accounts separate and set up for different reasons? I am assuming that this is the case, but I am trying to understand the necessity of 3 escrow accounts. What do each of them do?
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Customer reply replied 4 years ago


one is a 10% buyout escrow, next one is the maint. escrow, and the third is insurance deductible. all of them have that saying on them stating that the money in those escrows may also be used towards the truck expenses

Thank you for your follow-up.

Final question. Do you know how the contract reads pertaining to if escrow is used up, if the contracting party can then go into the settlement amount for the owed funds?
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Customer reply replied 4 years ago


it states that the drivers escrow money will be used to pay the repair bill . if there is not enough money in the escrow to pay the bill in full, then the company will deduct money from the drivers paycheck until the repair bill is paid in full the company will apply the additional weekly payments from the drivers paycheck to the repair bill. any money over 500 dollars on the driver's paycheck will be deducted and applied towards the repair bill these deductions will continue consecutively until the repair bill is paid in full

Thank you for your follow-up.

So it sounds as if the contract gives the party the choice of whether or not go to escrow funds first, once the first escrow account is used up, and pursue wages, rather than the contract limits the party from first going to the escrow account, THEN go to all the other accounts, and only then go toward wages. There is flexibility and choice, which is probably why they went after the wages first. Unless you can find this progression that I denoted above, and written in a language where the other party must first go toward escrowed funds in the other accounts, their behavior is no illegal. I do not know how the contract is written as I haven't read it, but that is what I suggest that you be on the lookout--if the language is not limiting and not something where it requires a specific action on their part, their behavior, while unsavory, is not illegal. This is also why I asked about all of the escrow accounts, most contracts that have multiple accounts for escrow either deny the ability for the party to go after escrow funds in the other accounts, or give them the choice to do so but not a contractual obligation or requirement.

Good luck.

Dimitry K., Esq.
Category: Legal
Satisfied Customers: 41,221
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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