Payton & Associates, LLC
Commercial Litigation Attorneys
Miami, Florida
786-574-4943

Diesel retailer sued for breach of contract

Pilot Flying J, the nation's largest retailer of airline diesel fuel, was in hot water after allegations of fraud and other charges have surfaced. The company, known to any Florida resident with a stake in air travel, has been the subject of a federal investigation for some time. The company stood accused of breach of contract, unjust enrichment and a host of other charges before agreeing to settle with the trucking union filing the complaints.

According to court documents, over 5,000 separate trucking companies filed suit against Pilot Flying J after they said they were cheated out of promised rebates. The company was allegedly rife with corruption, with employees being given training seminars on how to defraud trucking companies without being detected in so doing. Several employees have already pleaded guilty to charges ranging from fraud to concealment.

When the corruption came to light, Pilot Flying J conducted internal audits that seemed to confirm the complaints of the trucking companies. In return, a federal judge has approved an $84.9 million payout to the companies in total, equalling the value of the promised rebates plus additional monies for compensation. Pilot Flying J has been hailed by representation for the trucking companies as having done the "honorable thing."

Sometimes, individual members of a company will act in ways contrary to the company's mandate. While this is not necessarily the fault of the company's owners, Florida business people understand that an owner is responsible for the conduct of his or her employees. A breach of contract perpetrated by an employee must be handled effectively by officials if the company is to maintain legitimacy in the world market.

Source: ABC-7.com, Judge OKs $84.9M payout in truck stop scandal, Chuck Bartles, Nov. 25, 2013

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