Central Freight Lines Inc. and Trendsetter HR have settled a lawsuit over workers’ compensation, ending a three-year dispute.
The carrier, based in Waco, Texas, signed a deal with Trendsetter in 2008 to perform administrative services for the company and its employees. For more than three years, Central Freight alleged Trendsetter accepted payments but failed to deposit the funds for workers’ compensation coverage.
Central Freight stopped making payments after it conducted an audit, and Trendsetter sued for breach of contract in 2013.
However, a jury in December 2015 ruled Trendsetter breached the contract and awarded Central Freight $1.85 million.
Central Freight Lines ranks No. 94 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
The case was on appeal when the deal was reached.
“Central is satisfied that this settlement will allow both parties to move on.” said William Chamblee, who is with the Dallas firm of Chamblee Ryan Kershaw & Anderson, which represented Central Freight Lines.
Trendsetter owner D.W. Bobst said in a statement that neither he nor any affiliates were implicated in any wrongdoing, calling this a resolution to a contract dispute.
Terms of the settlement were not disclosed
Trendsetter also sued AIG for failure to provide workers’ compensation to Central Freight Lines, claiming that it directed the insurer to do so. That case is ongoing.