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Dhassan

New member
What is the name of your state?Ohio

We are a small trucking carrier in Ohio. We had a leased owner operator who was involved in an accident. He was not at fault and the claim paid to us, the carrier. We wrote a check to the owner operator for 75% and carrier keeps 25% as agreed. The owner operator took that check and cashed it. Today I get a call from the insurance company because that owner operator called progressive saying that he did not receive the whole amount of the claim check. The insurance company wants us to pay the owner operator the remaining 25%.
The owner operator agreed to 75% and cashed the check of that amount. What does the insurance have to do with it and do we have a leg to stand on with the owner operator and insurance company?
 


adjusterjack

Senior Member
Why did Progressive write the check to your company and who was Progressive insuring? The owner operator or the driver that caused the accident or your company?
 

Dhassan

New member
Progressive wrote us the check becuase the owner operator and the truck is leased on to our company. The owner operator leased to our company was hit by another truck driver at a shipper. Progressive insures that other driver. I called in the accident and made the claim for our our owner operator.
 

adjusterjack

Senior Member
Then the owner operator suffered the loss and should get paid the full amount of the claim. Why would you get 25%? OK, you have an agreement, but it seems like a foolish one for both of you. How much was the total claim?
 

Dhassan

New member
And regardless of if it is foolish or not, the owner operator agreed to it, took the check and cashed it. Case closed, right?
 

adjusterjack

Senior Member
Not necessarily.

What did you tell Progressive's claim rep that resulted in the claim check being made out to your company instead of to the owner of the damaged truck?

Does your written lease contract with the owner operator stipulate that you get 25% of damage claims or did you just hold the money hostage until he agreed to let you have 25%?

In other words, if it's not in his contract with you then what did you say to him to convince him to let you keep 25%?

He doesn't seem to happy about the arrangement.
 

LdiJ

Senior Member
Not necessarily.

What did you tell Progressive's claim rep that resulted in the claim check being made out to your company instead of to the owner of the damaged truck?

Does your written lease contract with the owner operator stipulate that you get 25% of damage claims or did you just hold the money hostage until he agreed to let you have 25%?

In other words, if it's not in his contract with you then what did you say to him to convince him to let you keep 25%?

He doesn't seem to happy about the arrangement.
On top of that, can your company articulate how you would have damages that would entitle you to that 25%? If the owner/operator needs to use the money to repair the truck, why would you have any articulatable damages?
 

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