Navistar defeats $16.5M lawsuit over delayed truck deliveries 

Michigan jury rejects breach of contract and fraud claims brought by GLS LeasCo and Central Transport

A Michigan jury concluded on Monday that Navistar owed no damages to GLS LeasCo or Central Transport. (Photo: Jim Allen/FreightWaves)

A Michigan federal jury has sided with engine and truck manufacturer Navistar, rejecting a $16.5 million lawsuit brought by GLS LeasCo and Central Transport.

GLS LeasCo and Central Transport alleged Navistar’s delayed truck deliveries caused millions in lost resale value and higher operating costs during one of the hottest used-truck markets in history.

The 10-person jury found on Monday that GLS LeasCo and Central Transport failed to prove their breach of contract and fraud claims after a multi-year dispute over the delivery of 1,100 International tractors ordered in 2022. 

Jurors concluded Navistar was not liable for damages and awarded the plaintiffs nothing.

The case centered on a 2022 agreement under which GLS agreed to purchase 1,100 model-year 2023 International tractors after waiving a lucrative trade-in arrangement covering its older fleet. 

GLS argued it made that concession because Navistar promised an accelerated production schedule that would allow it to capitalize on historically high used-truck prices before the market cooled.

Instead, GLS alleged Navistar delivered only 18 new tractors by the end of May 2022, with deliveries stretching into September 2023. According to the lawsuit, the delays caused the value of the company’s 2018 tractors to plunge more than 75%, resulting in approximately $15.7 million in lost resale value, plus more than $1 million in additional maintenance and repair costs.

GLS LeasCo, which purchases trucks and leases them to Warren, Michigan-based carrier Central Transport, argued that Navistar knowingly promised an accelerated production schedule it could not meet in order to persuade GLS to give up contractual trade-in rights worth tens of millions of dollars.

Central Transport — which specializes in less-than-truckload shipping — operates a fleet of over 2,200 tractors and 8,500 trailers. The company maintains a network of equipment — which also includes over 1,700 additional support units — to service its 200+ terminal facilities across the U.S. and Canada.

The companies contended the earlier production schedule was the key consideration behind the revised agreement because it would allow them to retire and sell hundreds of used tractors while prices remained elevated during the pandemic-era supply crunch.

Navistar denied those allegations throughout the case, arguing the 2022 letter agreement established production slots rather than guaranteed delivery dates. The company also maintained there was an important distinction between when trucks were built and when they were ultimately delivered to customers.

The manufacturer further argued it had informed GLS that production would extend beyond the original timeline because of industrywide supply-chain disruptions, including shortages of Bendix Fusion collision mitigation components.

The lawsuit was filed in 2023 after U.S. District Judge Mark Goldsmith previously allowed the core breach-of-contract claims to proceed toward trial while narrowing portions of the plaintiffs’ fraud allegations. 

In a 2025 opinion, the court ruled factual disputes surrounding the parties’ agreements and production schedule were best resolved by a jury rather than through summary judgment.

The plaintiffs had sought approximately $16.5 million in damages tied primarily to lost used-truck resale values and increased operating expenses. As of the jury’s verdict, GLS and Central Transport had not publicly indicated whether they intended to appeal.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com