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November 7, 2003 7:00 AM, EST

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group of major U.S. transportation companies said they won the right to collect up to $8 million from WorldPoint Logistics, when a Seattle judge ruled carriers’ bills of lading may be enforced during bankruptcy proceedings.

About 34 carrier companies, led by Covenant Transport and CSX Railroad, and later joined by Pacer International and Burlington Northern Santa Fe railroad among others, won a lawsuit Oct. 23 against WorldPoint Logistics for unpaid invoices for freight services.

“This is the first time that carriers’ rights have been protected in a bankruptcy setting that I know of,” Stephen Day, an attorney with Betts, Patterson, Mines and who represented the carriers, told Transport Topics.

“This is the first time in the 9th circuit that a bankruptcy judge has recognized the carriers’ bill-of-lading rights as being superior to a broker’s secured creditor.”

For the full story, see the Nov. 3 edition of Transport Topics. Subscribe today.

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