- 35 - due by wire transfer or direct deposit into an account of TLC. TLC did not maintain separate accounts for the funds received from each trucking company client. In order to minimize TLC’s loss in the event a trucking company client did not pay to it the payroll period net lease fee due, each exclusive lease agreement required each trucking company client to make a deposit with TLC equal to $650 per truck ($650 deposit). TLC intended the $650 deposit to approximate TLC’s payroll obligation for one week for each driver-employee whom it leased to a trucking company client. The $650 deposit that each trucking company client paid to TLC did not ensure that TLC had sufficient funds to pay TLC’s payroll obligation with respect to each driver-employee whom it leased to such trucking company client where (1) such trucking company client selected a payroll period that covered more than one week and/or (2) such driver-employee was entitled to a batch report lump sum amount that was greater than $650 per payroll period. For the calendar years 1993, 1994, 1995, and 1996, TLC sent a form letter (per diem letter) to each trucking company client, which set forth the total of all per diem amounts that TLC paid to the driver-employees whom it leased to such trucking company client during the preceding calendar year. The per diem letter for calendar year 1993 (sent to each trucking company client early in calender year 1994) stated in pertinent part:Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Next
Last modified: May 25, 2011