Court Order Forces Carriers to Resume Service to Ivaco
03/23/2004 -
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Court Order Forces
Carriers
to Resume Service to Ivaco
March 23, 2004 — Following a group of carriers’ withdrawal of trucking services from Ivaco, the company went to court seeking an order to force the carriers to resume service. Justice Farley, who is also presiding over the Stelco and Air Canada re-organizations, ruled in favor of Ivaco. However, the order applies to only the three major carriers.
Ivaco, which is presently under creditor protection, owes the carriers
for transportation services provided prior to the date upon which the
court granted protection.
The carriers are receiving widespread support from the trucking industry,
which is most concerned by the turn of events in view of the fact that
the three companies targeted by the court order were not under any formal
agreement or even commitment to provide services to the Ivaco group. The
three carriers are now looking at resolving this issue through all legal
channels available to them and have accordingly instructed counsel to
look at the most appropriate course of action.
Says OTA President, David Bradley, "Most carriers realize it could be them next time and they appreciate the risk the carriers have taken under very trying circumstances." In the meantime, the three carriers are complying with the order and have resumed service in good faith.
The Ontario Trucking Association was founded in 1926 and provides services and policy advocacy for its members. The membership includes trucking companies from virtually all Canadian provinces as well as the United States.