Can a Freight Broker Retaliate against a carrier for a valid claim on their bond

Discussion in 'Freight Broker Forum' started by RLChicago, Dec 11, 2019.

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  1. RLChicago

    RLChicago Bobtail Member

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    Hi.

    So I was wondering about whether a freight broker can retaliate against a carrier for a valid claim on their bond. A claim was filed due to refusal of payment for services performed on a load that went back to the original shipper. Now the freight broker seems to withholding payment on other loads previously moved with them. The brokers also said that their managers instructed them to stop working with us due to the claim.

    What can be done on the carrier side?
    We believe the claim is valid as a truck was sent to perform the service, loaded, unloaded, reloaded, unloaded, inspected, reloaded, unloaded again then sent back to original shipper.
     
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  3. x1Heavy

    x1Heavy Road Train Member

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    If they did engage in that behavior the Motor Carrier should recognize the actions for what they are. Then make decisions moving forward.
     
  4. ZVar

    ZVar Road Train Member

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    About all you can do is file a claim on all loads not paid. I mean you could take them to court, and likely win. Problem there is collecting.

    Is for no longer using your services... Of course they can switch carriers in the absence of a contract . Even with a contract it's a matter for the courts to settle.
     
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  5. DUNE-T

    DUNE-T Road Train Member

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  6. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    Hmmmm. Is there a limit to the number of claims that can be files against their bond?
     
  7. xsetra

    xsetra Road Train Member

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    There is no limit on the amount that can be filed against a bond.
    The bonding company only has to pay out the amount equal to the bond.

    I think most brokers would pay all legal invoices before the bond has to pay.
     
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  8. xsetra

    xsetra Road Train Member

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    If you have a rate confirmation for the load. Broker refuses, file on the bond.
    Legally the broker can not hold payment for other loads, unless it says they can in your contract.

    I would file a claim on all money owed. I
     
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  9. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    I'd just file more claims then. Someone at the bond company is going to go wtf at some point. I know in the world of scorecards we live in now, I'd think that so many filings would negatively impact that broker.
     
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  10. Dale thompson

    Dale thompson Road Train Member

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    You’re doing a claim against their bond and you wish to continue working with them SMH.
     
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  11. PPDCT

    PPDCT Road Train Member

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    I mean, we're going to need a lot more context as to what's transpired to bring you to this point.

    I admit that I'm more than a little perplexed as to why you'd want to continue to do business with someone you filed against, and I can't see why you'd be surprised as to why they'd want to stop business doing with you. But hey, what do I know?
     
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