Holding payment over BS claim

Offset/set off and COD are separate and unrelated issues. With your scenario it is possible that is exactly what could happen. Possibly worse depending on the contract and the scenario. There are many variables... but it's very common for contracts presented to carriers by brokers to have language in them with the carrier granting the broker the right to offset. It's no scam if you meant that as in an actual illegal scam. Carriers should oppose granting brokers any right to offset and should also insist on language that says the carrier should be paid on time for all charges. This way the carrier can pay for claims after proper adjudication rather than the broker keeping a nice easy relationship with its customer at the cost of the Carrier(s). In other words, broker generated contracts often have the carrier paying for any and all mistakes in a load instead of rather than what they would otherwise be responsible for. Under some contracts I've read; if the shipper/receiver damages the freight the carrier agrees to pay for it. Under transportation law (and perhaps common sense) that wouldn't be the case. If the carrier agrees to take on the liability of all parties and indemnify all the other parties in broadly worded contracts...well it can get very expensive for the carrier if anything goes wrong in moving a load. If the carrier is responsible paying for anything under these contracts and the carrier's insurance doesn't cover it; the carrier is still responsible for payment. And if the broker takes the carrier to court to enforce a contract and they win the carrier will also get to pay for the brokers lawyers who took you to court to enforce the contract. That's also common in broker prepared contracts. Carriers have, indeed, gone bankrupt over this stuff.

 

Sounds cheap for an OS/OD load. Was it less than 100 miles?

 

Earlier in this thread I linked to a book but that link hasn't been working so here is another link to the book I recommended titled Protecting Motor Carrier Interests in Contracts http://seatonandhusk.blogspot.com/p/book-order.html

 

Can anyone recommend a few collections firms and affordable transportation lawyers for dealing with brokers who hold pay, frivolously "deduct" pay, and other such skimping tactics against overworked and legally unsophisticated O/O's and small trucking companies? You can email it to me if you don't want to post it.

 

http://www.transportationlaw.net

 

Thank you, it sounds like a good law firm. How about less expensive collections experts - those without large overhead associated with law firms?

 

You CANNOT..I repeat CANNOT hold monies due for transportation.....Regardless of what those cheesy Broker/Carrier Rate Cons stipulate..

Freight payment made to broker..Broker to make payment to carerier 100% due.

A claim is handled as a claim..You handle a legitimate claim professonaly........If Broker refuses to pay you transportation costs...

file on their Bond..If you get nowhere..I have a few guys in Chicago that Can "collect" the old fashioned way



Anyway seriously........The Law states a Broker cannot with-hold monies due to a carrier for transporetation...........A claim is a complete different animal..

And Keep in mind.........If a Claim is awarded to the Customer..YOU (the carrier) are Entitled to any and all Salvage

 

Let me ask you this, did you take pictures of the load when you picked it up and when you delivered it?

 

I know this, but it happens all the time, left and right, to thousands of truckers.

can you cite a few statutes you are referring to? It always helps to actually have such precise references.