Drivers Win $10.4M Verdict Against Michigan Carrier Over Contract Dispute

Drivers Win $10.4 Million in Contract Dispute With Michigan Carrier, Raising Industry Transparency Concerns

A federal court in Michigan has awarded a group of about 100 truck drivers a $10.46 million verdict against RSP Express, marking a significant legal victory in a dispute over cross-border freight compensation—and adding fuel to the ongoing debate over rate transparency in freight contracting.

The decision, issued Wednesday by Judge Gershwin A. Drain of the U.S. District Court for the Eastern District of Michigan, found that RSP Express shorted drivers on payments tied to freight hauled to or from Canada and Mexico. The court awarded $3.5 million in damages, tripled under the RICO Act to nearly $10.5 million total.

“This judgment is a major victory for working people,” said Keith Flynn, an attorney representing the drivers. “They were promised compensation. They were defrauded from receiving that compensation.”

At Issue: Cross-Border Deductions

The lawsuit centered on whether drivers were entitled to 80% of gross revenues for loads they hauled under contract with RSP, a Romulus, Michigan-based carrier. According to court filings, RSP withheld deductions related to costs for third-party carriers who moved freight across the border, arguing that such loads were not covered under drivers' compensation agreements.

However, Judge Drain ruled that the contract’s language—stating “any freight by Contractor”—covered all freight hauled by the plaintiffs, regardless of whether a third-party carrier moved it across the border.

“The Settlement Statements … demonstrate that Plaintiffs were consistently paid 80 percent of the gross revenues for all freight they transported,” Drain wrote, concluding that RSP underreported gross revenues and improperly reduced payments.

The judge noted that RSP’s issuance of fraudulent weekly settlement statements to over 100 drivers qualified under the civil RICO statute.

Tied to Ongoing Industry Fight Over Transparency

This case adds another dimension to broader industry concerns around freight rate transparency and compensation practices—issues we’ve covered extensively at FreightCaviar. The verdict shows how a lack of clear disclosure in rate-setting and settlement processes can harm owner-operators and small carriers.

We’ve reported on similar disputes in the broker-carrier dynamic, such as the TQL transparency fight and ongoing calls for broker rate transparency reform. As seen in those cases and others you can read here, drivers and carriers continue to challenge opaque practices that obscure true freight revenues.

While this ruling focused on a carrier’s contract breach, the underlying theme aligns with growing demands for accountability and openness in freight transactions.

What’s Next?

For now it remains unclear whether RSP Express will appeal or how the ruling may affect its operations.

For drivers and independent contractors, this case reinforces the importance of understanding contract terms, verifying settlement data, and advocating for transparent payment structures. Legal outcomes like this may embolden more drivers to challenge questionable payment practices—whether tied to carrier contracts or broker agreements.

Source: FreightWaves