ABF decision pending
Fort Smith-based Arkansas Best Corp (NasdaqGS:ABFS) appealed the dismissal of its lawsuit against the International Brotherhood of Teamsters and had its day in court this morning.
The company is still waiting on a ruling, said spokesman David Humphrey, adding ABF officials aren’t sure when the panel of judges who heard the appeal will come to a decision on the case.
Arkansas Best is the parent company of ABF Freight System, a less-than-truckload carrier employing about 7,000 union drivers. The company filed suit against the Teamsters because of some concessions the union allowed YRC Worldwide, an Overland Park, Kan.-based less-than-truckload carrier that employs about 25,000 union drivers and is a major ABF competitor.
Humphrey said the purpose of the lawsuit is to “level the playing field” — YRC was able to negotiate some concessions that ABF couldn’t and the Arkansas carrier says it is at an unfair disadvantage in the market. ABF has asked for $750 million in damages.
The complaint was dismissed late last year by U.S. District Court Susan Webber Wright (Eastern District of Arkansas) for want of jurisdiction. ABF appealed that decision on March 21, where it was taken up this morning by the U.S. Court of Appeals for the Eighth Circuit in St. Louis.
When First Arkansas News hears of a decision on that appeal, we’ll post it.
An interesting side note to this story is that ABF, by and large, still values its relationship with the Teamsters.
Benton resident. Rogue journalist. Recovering attorney. Email = Ethan@FirstArkansasNews.net.