Three motorcoach operators have sued bus broker Go Ground for non-payment of $80,047 they claim they are owed for 12 charter trips provided from May through September. The suit was filed Oct. 28 in the U.S. District Court for the Northern District of Illinois in Chicago.
The plaintiffs are Lux Bus America Co. of Anaheim, California, which seeks payment for three trips invoiced at $10,510; Industrial Bus Lines Inc. of Santa Fe, New Mexico, which lists non-payments of $27,232.50 covering three trips; and Ace Express Coaches LLC of Golden, Colorado, which claims it is owed $46,438.95 for six charters.
The suit lists $4,134 in “credit due” to Go Ground but does not provide more details.
Go Ground is headquartered in Woodridge, Illinois. One of its specialties is collegiate sports transportation. Go Ground is contracted by the National Collegiate Athletic Association to arrange charters for championship travel. To qualify for that business, charter operators must pay fees for third-party inspections and certifications.
The suit is a reminder that charter operators should use caution when doing business with brokers, said Ken Presley, the United Motorcoach Association’s vice president of industry relations and chief operating officer. “Based on the calls we occasionally receive here at UMA, we encourage bus and motorcoach companies when dealing with brokers to make sure they are paid before the vehicle leaves the lot.”
The claims
The first count claimed by the carriers against Go Ground in the operators’ suit is breach of contract.
“All services provided by Plaintiffs were performed at the request of and with the consent of Defendant. Defendant agreed to pay Plaintiffs the amounts stated in the Invoices. Plaintiffs performed all duties necessary in accordance with the agreement between the parties.
“Plaintiffs billed and invoiced Defendant the agreed upon amounts for such labor and services provided to Defendant. In material breach of its duties, Defendant has failed and refused to pay Plaintiffs the sums due.”
The suit alleges the “Factual Background” of its claims includes: “From time to time Defendant (Go Ground) solicited Plaintiffs’ services and engaged Plaintiffs to provide motor coach transportation for Defendant’s customers. Plaintiffs performed the services and issued Invoices (as defined below) to Defendant at regular intervals for the cost of the services.
“Defendant did not object to either the amount on the Invoices or the quality of the work, labor, and services provided by Plaintiffs. Plaintiffs have duly performed all conditions precedent on their part required to be entitled to payment.
“Plaintiffs have not been paid by Defendant for the work, labor, and services provided to Defendant. Upon information and belief, Defendant has been paid by its customers for the work, labor, and services performed by Plaintiffs.
“Plaintiffs now seeks payment in the sum of $80,047.45 from Defendant… together with prejudgment interest, post judgment interest, and all other just and appropriate relief.”
Go Ground had not filed a response with the court by the deadline for this issue.
Controversial model
In 2018, leaders of the United Motorcoach Association, American Bus Association, International Motorcoach Group and Trailways met travel administrators at the NCAA headquarters in Indianapolis to discuss industry concerns about working with Go Ground, which charges fees as a prerequisite for inspections and certifications before being retained for charters to national tournaments.
In July 2017 the NCAA announced a five-year extension of its contract with the broker. The Go Ground program, STATS Certified (Safe Transport of Athletes, Teams and Students), has been controversial since it was instituted in 2011.
NCAA administers 90 championships in 24 sports for member colleges and universities. It coordinates and pays for team transportation to those playoffs. NCAA does not cover sports travel during conference seasons when each school makes charter arrangements independently.
The Go Ground certification requirement has been opposed by many charter operators, particularly the Motorcoach Association of South Carolina. Its members voted last year to opt out of the program and formally oppose the plan. South Carolina operators sent a letter to other national and state associations to ask them to take similar actions. They expressed concerns that third-party inspections could spread through the industry.
“The Federal Motor Carrier Safety Administration is the only agency that can grant authority to passenger transportation companies to operate in interstate passenger transportation and the only agency that can withdraw that operating authority,” the South Carolina letter stated. “We do not need an independent marketing firm or third party to do another investigation that in reality creates a revenue source for Go Ground.”
No federal position
In 2014 the Federal Motor Carrier Safety Administration (FMCSA) declined a request to rein in states and other political subdivisions that were requiring third-party safety audits as a requisite for conducting government-funded charters. Some industry executives had asked FMCSA to ban the audits, arguing that they usurped federal authority, violated federal law and discriminated against small carriers through their pricing policies.
Anne S. Ferro, then FMCSA administrator, responded, “Our Office of Chief Counsel has determined that states, political subdivisions, public institutions and public schools are not preempted from using the services of third-party inspectors.”
Go Ground
Bill Maulsby, the founder and chief executive officer of Go Ground, is described by the company web site as “a long-time entrepreneur and since 2000 has been recognized as a charter bus industry change agent, technology pioneer and leading advocate for independent certification of bus operator safety.”
Maulsby also was the founder of BusBank, which filed for bankruptcy in August 2009. That court filing listed about $2 million in debts to dozens of bus and motorcoach companies. Under new ownership and management, BusBank emerged from bankruptcy and has become a trustworthy industry stalwart.
The Go Ground web site explains its role in the industry: “We started GO GROUND with a simple vision: Make the charter bus experience better
“We don’t own a single bus, but we are charter bus experts and pioneered the strategic use of regional charter bus fleets to make the experience better.
“There are 3,000+ charter bus companies in North America and none of them have a national presence. We do. We create and manage our innovative transport solutions in partnership with the industry’s largest network of the finest charter bus operators in every market in all 50 states and Canada.
“In fact, GO GROUND created the ground transportation program for the NCAA Championships. Nine years later, it’s going strong.”
